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irina [24]
4 years ago
11

Use interest rate parity to answer this question. A U.S. investor has a choice between a risk minus free one minus year U.S. sec

urity with an annual return of​ 4%, and a comparable British security with a return of​ 5%. If the spot rate is ​$1.43/pound​, the forward rate is ​$1.44/pound​, and there are no transaction​ costs, the investor should invest in the U.S. security. True or false?
Business
1 answer:
Nataly_w [17]4 years ago
3 0

Answer:

it is false

Explanation:

we have given

annual return =​ 4%

return =​ 5%

spot rate = ​$1.43/pound​

forward rate = ​$1.44/pound

solution

we know that investor should invest in British security

because \frac{1+0.04}{1+0.05}  < \frac{1.43}{1.44}

investing in US security is less profitable

so it is false

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Margaret [11]

Yes, as the unemployment compensation scheme only provides the unemployed with enough money to meet their basic necessities.

Payments provided to unemployed persons by authorised authorities are known as unemployment benefits, sometimes known as unemployment insurance, unemployment payment, unemployment compensation. Benefits are paid for in the US through a mandatory government insurance programme, not through individual citizen taxes. Those amounts may be little, merely covering the most basic requirements, or they could make up for the lost time proportionate to the prior earned wage, depending on the jurisdiction and the individual.

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2 years ago
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Those shoes aren't mine
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4 years ago
Southland farm sold ten september futures contracts on wheat. Southland farm will:______.
Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

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8 0
3 years ago
As a human resource manager, how would you recommend that a part-time<br> employee is compensated?
barxatty [35]

Answer:

C. Part-time employees should be compensated with an hourly wage

because the number of hours they may work each month

changes

<u>Multiple-choices</u>

employee is compensated?

A. Part-time employees should be compensated with a salary

because the number of hours they may work each month

changes

O

B. Part-time employees should be compensated with an hourly wage

because the number of hours they work each month is always the

same.

O

C. Part-time employees should be compensated with an hourly wage

because the number of hours they may work each month

changes

O

D. Part-time employees should be compensated with a salary

because the number of hours they work each month is always the

same.

Explanation:

Part-time workers are called to duty on a need basis.  Usually, part-time workers are assigned specific tasks to perform is within a particular duration. Their contribution is measured in terms of hours worked or completed units of output.

Part-time workers contrast with full-time workers who report for duty every working day. Part-time workers are not required to work for certain hours per week or month like full-time workers. The number of hours that a part-time worker works in a week varies from time to time. Therefore, the best way of compensating them is through an hourly rate.

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3 years ago
Importance of having a business plan to ensure the success of a business​
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3 years ago
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