Answer:
C. The Federal Reserve will need to have official reserves of euros to purchase dollars in the foreign exchange market.
Explanation:
Federal Reserve required to have a euros reserves as it can applied it also at the case when the exchange rate is move upward or downward
For the other things, the fed could restrict the supply with respect to the dollar in the foreign exchange market in order to get it stable that opposed with euro
Therefore the option c is correct
Answer:
3) laissez-faire
Explanation:
Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.
President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.
Answer:
The average expected rate of return on the market portfolio is 10 percent.
Explanation:
The CAPM (fixed asset pricing) model describes the relationship between systematic risk and expected return on assets, especially stocks. CAPM is widely used throughout the financial community to value high-risk securities and achieve the expected returns on assets when taking into account the risk of those assets and the cost of capital.
The formula for calculating the expected return on an asset taking into account its risk is as follows:
ERi = Rf + βi (ERm - Rf)
where:
ERi = expected return on investment
Rf = risk-free interest rate = 4 percent.
βi = beta inversion =1.0
(ERm −Rf) = market risk premium = 6 percent.
ERi = 4 + 1 ×(6) =10
The average expected rate of return on the market portfolio is 10 percent.
Answer:
The answer is: A) 0.6
Explanation:
First we will calculate the midpoint for units:
- change in units = 40 - 60 = -20
- average units = (40 + 60) / 2 = 50
- midpoint for units = 20 / 50 = 0.4 (we only use positive numbers)
Now we will calculate the midpoint for price:
- change in price = 40 - 20 = 20
- average price = (40 + 20) / 2 = 30
- midpoint for units = 20 / 30 = 0.67
Finally we divide 0.4 / 0.67 = 0.6
