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3 years ago

The steady growth line best supports which conclusion about the economy

Business

1 answer:

Nadusha1986 [10]3 years ago

5 0

Answer:

A.The economy as a whole continues to grow between each business cycle.

Explanation:

The steady growth line best supports the conclusion about the economy

represented in the graph is that "The economy as a whole continues to grow between each business cycle."

The above statement is true because the production output of the firm continues to rise with time. As time goes on in the business cycle of the firm, the firm continues to grow, which is evident in the increase in the level of production.

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The Dow Jones is currently valued at $24,000 and the 1-year Dow Jones Mini Future contract has a price of $24,750. Note Dow Jone

Svetllana [295]

Answer:

a) 152

b) $15,310,562.50

Explanation:

A) What position in futures contracts on the S & P 500 is it necessary to hedge the portfolio

The position is to short

The number to be shorted can be calculated using the formula below:

= ( β * value of portfolio) / (one futures contract size * number of times the value of the contract price)

where ; value of portfolio = $15 million , Beta = 1.25 , one future contract size = $24750, number of times = 5

= ( 1.25 * 15,000,000) / ( 24,750 * 5) = 151.5 ≈ 152 contracts

b) What is our portfolio value of your portfolio with the hedge from part a

Given that 6 months has passed

Dow Jones now valued at $24720

Future price now $25,100

first step : calculate loss from position in part a

= 152 * 5 * ( 24,750 - 25,100 ) = - $266,000

next : calculate Gain on index

= 24,720 - 24,000 / 24,000 = 0.03 = 3.00%

Total gain = Gain on index + annual dividend / 2

= 3% + 0.75 / 2 = 3.375%

where risk free rate ( 6 months ) = gain on index / 2 = 1.5%

Calculate Return with the use of CAPM

= 1.5% + 1.25* ( 3.375% - 1.5% ) = 3.8438%

Hence value of portfolio after 6 months will be calculated as

= Current portfolio value * ( 1 + return )

= 15,576,562.50

Therefore the

Net value = portfolio value - loss from futures position

=$15,310,562.50

6 0

2 years ago

3.1.2 Give an example of taxes on products.

melamori03 [73]

Explanation:

So that the number is given up on the answer

3 0

3 years ago

A director violates the corporate opportunity doctrine if he or she competes with the corporation, unless the disinterested dire

DIA [1.3K]

The given statement " A director violates the corporate opportunity doctrine if he or she competes with the corporation, unless the disinterested directors approve of the director's actions " is TRUE

Explanation:

A business opportunity applies to any business opportunity that a client may gain.

The Corporate Opportunity law controls the moral responsibility of directors, managers and managing stockholders in an organisation, with loyalty responsibilities, not to misuse such incentives without first offering to the corporate board the right to reject the opportunity on behalf of the company.

When these actions are broken and a director of the company takes the chance, then the trustee has abused his obligation to be trustworthy and will be able to maintain a constructive trust with the proceeds arising from the incorrect transaction.

8 0

3 years ago

In ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.

STatiana [176]

Answer:

traditional goal setting

Explanation:

This is traditional goal setting because the goals flow from the top down. Each organisational area then incorporates them from the top down.

3 0

3 years ago

Which of the following statements is false?

ella [17]

Answer: D

Explanation:

Not necessarily. As long as the company follows GAAP (IFRS or ASPE), the format and information should be the same. This is because the accounting standards requires firm to report financial information in a specific way.

3 0

2 years ago