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yawa3891 [41]
3 years ago
12

Long-term corporate bond have had a historical average return of 6.4% and a standard deviation of 8.4% over this same time perio

d. What is the range of returns that you would expect to experience 68% of the time for long-term corporate bonds?
Business
1 answer:
aivan3 [116]3 years ago
3 0

Answer:

The range will be "-2.0% to 14.8%". A further explanation is given below.

Explanation:

According to the question,

For 68%, the range seems to be +/- 1 standard deviation of the mean. So that the upper as well as the lower range will be:

Upper range,

= 6.4 - 8.4

= -2.0 (%)

Lower range,

= 6.4 + 8.4

= 14.8 (%)

So that the range would be between "-2.0% to 14.8%".

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You would have to earn an <span>Associate of Applied Science (AAS) degree or an advanced technical certificate. </span>
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4 years ago
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115
vfiekz [6]

Answer:

1.30%

15.60%

16.77%

Explanation:

The monthly return is the amount payable monthly divided  by the current price of the investment vehicle.

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EAR=1.167651776 -1

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5 0
3 years ago
A monopoly firm's use of a tariff provides it with additional protection because the tariff:
notsponge [240]

A monopoly firm's use of a tariff provides it with additional protection because the tariff reduces competition from imports by raising the import price.

Option C

<u>Explanation:</u>

A monopoly business is a price-maker, even through the amount, it generate it can control the market rate. When selling less and it can sell far less and can sell more and sell just because the price drops. when making less because it can sell more.

This is due to the fact that the tariff basically transfers the profits out of the international monopolist to the national government.

The monopolist's revenues are limited to an amount provided by the Horizontal stripe when the tax is introduced. Therefore, the tariff increases the total domestic social security as it reduces the profits of the foreign company.

8 0
3 years ago
The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Market
DIA [1.3K]

Answer:

top-of-mind awareness

Explanation:

the highest level of awareness, occurs when customers mention a specific brand name first when they are asked about a product or service

6 0
3 years ago
Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa
lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.  

3 0
3 years ago
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