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Tresset [83]
3 years ago
13

If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline i

f the value of the underlying asset suddenly and unexpectedly fell by $10
Business
1 answer:
Ratling [72]3 years ago
5 0

Answer:

$115.20

Explanation:

Missing part is <em>"Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14."</em>

<em />

If the underlying assets price fall by $10, then the securities value will fall by a ratio of $10

Value of securities = $128/$10 = $12.80

Decline in value of securities = $128 - $12.80 = $115.20. Thus, the Decline in value of the financial securities is $115.20

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Answer:

E To prevent dumping

Explanation:

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Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.

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Google: How to be successful?
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a

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