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Rina8888 [55]
3 years ago
15

Recent studies show that when investors control exchange risk by using currency forward contracts, _____ . Group of answer choic

es they can substantially enhance the efficiency of international bond portfolios they can substantially enhance the efficiency of international stock portfolios they can substantially enhance the efficiency of international bond and stock portfolios the risk of investing in foreign stock markets can be completely hedged
Business
1 answer:
ICE Princess25 [194]3 years ago
4 0

Answer:

they can substantially enhance the efficiency of international bond portfolios.

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

Recent studies show that when investors control exchange risk by using currency forward contracts, they can substantially enhance the efficiency of international bond portfolios.

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Suppose the Shelly Group has identified two possible demand levels for copies per​ month:              Copies ​(per month) Proba
vazorg [7]

Answer:

expected cost = $2800 per month

Explanation:

given data

Copies ​(per month)  = 4,000

probability = 40%

copies (per month) = 9,000

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lease new copier = $1,050

variable cost = $0.25

to find out

What is the expected cost

solution

we know that expected cost is here

expected cost = fixed cost + variable cost     .................1

and here demand of copies per month is express as

= ( 40 % of 4000 ) + ( 60% of 9000 )

= 1600 + 5400 = 7000

so from equation 1

expected cost = fixed cost + variable cost

expected cost = 1050 + 0.25 × 7000

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8 0
3 years ago
An optimum that occurs as a corner solution A. cannot exhaust the budget constraint. B. includes only one good. C. cannot be an
bazaltina [42]

Answer:

B. includes only one good.

Explanation:

A corner solution is a microeconomics concept, which is used to illustrate the graphical representation of a situation where an individual wouldn't do some things at any cost or for any price.

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Hence, an optimum that occurs as a corner solution includes only one good.

<em>For instance, Tracy saying she wouldn't buy a XYZ phone for any price, or Sarah saying she would visit a museum no matter how much it will cost her are some examples of corner solution. </em>

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A leader has more responsibility than a "peasent" or commener.

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Answer:

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The second choice would be the most preferred as it conveys the idea in a formal and precise manner. <u>The complex sentence beginning with the subordinate clause already hints the listener that the key message is yet to come. It helps him/her in understanding the intended message without any confusion</u>. The first sentence fails to create that specificity as it connects two independent ideas which remove the listener's focus from the main idea i.e. 'she will begin a flextime schedule in two weeks.' Thus, option (2) adopts the correct format and sentence structure to deliver the message effectively, efficiently, and precisely.

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