Answer:
- They are related to Brokerage firms
- Brokerage firms issuing stocks will always encourage investors to buy rather than sell off their stocks.
Explanation:
Sell-side analysts mostly work for various brokerage firms hence the reason why they are too optimistic in their recommendations to buy stocks while they are also too slow to recommend sells .
And Brokerage firms will always encourage investors to buy their shares or stocks ( buy-side) instead of selling off their shares or stocks
She will be better of with a 1.3 percent interest compounded monthly
Answer:
The correct answer is letter "D": intentional infliction of emotional distress.
Explanation:
Intentional infliction of emotional distress or IIED is a common law applied when an individual causes emotional distress to another person intentionally by behaving inappropriately. Intentional infliction of emotional distress is usually accompanied by physical injuries.
Answer:
a. A 20 year, 10% coupon bond
Explanation:
Reinvestment risk refers to the risk of earning lower rate of return than the return earned on current investments.
For example, a $1000, 6% callable bond is issued. The lender earns 6% i.e $60 per annum. Suppose the market interest rates drop to 4% and the issuer redeems these bonds. Then, the lender has to invest his proceeds at 4% and not unlike 6% in previous case.
This means, his rate of return has reduced on reinvestment. This is reinvestment risk.
Bond term is directly related to reinvestment risk. Higher the term, higher the reinvestment risk.
In the given case, 20 year 10% coupon bond bears the most reinvestment risk since the term is more. Higher the term of the bond, higher the possibility that interest rates would be lower than the interest rate at the time of purchase.
<span>D.) The contract must represent a valid agreement between parties and an exchange of something of value between parties must have occurred or been promised to occur.</span>
