Answer:
1 year rate 2 year from now = 12% (Approx)
Explanation:
Given:
1-year rate = 8%
2-year rate = 9%
3-year rate = 10%
Computation:
According to Pure Expectations Hypothesis,
(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)
(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)
1.331 = 1.1881 (1 + 1 year rate 2 year from now)
(1 + 1 year rate 2 year from now) = 1.12
1 year rate 2 year from now = 0.12
1 year rate 2 year from now = 12% (Approx)
<u>Answer: </u>A is core competence
<u>Explanation:</u>
Core competence is the common term that is used by an organisation to define its multiple resources and skills that are not similar to any one else in the market. Core competence is also the strategic advantage that a business possess in the market.
The strength of the organisation helps it attract many customers and tap all the opportunities in the market at the right time to achieve success. The core competence of the organisation cannot be easily identified or imitated by the competitors in the market.
Answer:
A. Differentiation strategy.
Explanation:
In a market different firms try to maintain a competitive edge over others. This is achieved by using various strategies like: Differentiation strategy, Local strategy, Regional strategy, Cost-leadership strategy, Global strategy.
In the given scenario ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price.
This is a differentiation strategy where a firm tries to make their product different from.otgers in order to maintain a competitive advantage over others
Answer:
Option (a) $372.60
Explanation:
Data provided in the question:
Number of days during which the seller occupied the house = 136 days
Estimated cost for the entire year = $1,000
Now,
The period of time during which the seller occupied the house in years
= Number of days during which the seller occupied the house ÷ Total number of days in a year
= 136 ÷ 365
= 0.37260
Therefore,
The amount that the buyer will be credited = 0.37260 × $1,000
= $372.60
