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velikii [3]
2 years ago
9

If both covered interest parity and uncovered interest parity hold, then the expected future spot rate is equal to the: current

forward rate. current interest rate. current spot rate. interest rate spread.
Business
1 answer:
KatRina [158]2 years ago
3 0

There is often interest rates on products. If both covered interest parity and uncovered interest parity hold, then the expected future spot rate is equal to the current forward rate.

<h3>What is the covered interest parity and uncovered interest parity?</h3>

Covered interest parity is known to be one that involves using forward contracts to handle an exchange rate.

The uncovered interest rate parity is used mostly in forecasting rates and not handling exposure to foreign exchange risk.

In equilibrium, if both uncovered and covered interest parity hold, the condition that should exist is that the forward rate will equal the expected future spot rate.

Learn more about uncovered interest parity from

brainly.com/question/7526796

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Suppose you hold a particular investment for 7 months. You calculate that your holding period return is 8.4 percent. What is you
Leni [432]

Answer:

The annualized return is 14.82%

Explanation:

The formula for annualized return is given as Annualized return = (1+ holding return)12/n - 1

Holding return is 8.4%

n is the holding period of 7 months

Annualized return =(1+0.084)^(12/7)-1

Annualized return =14.82%

It is wrong to simply calculate annualized return as 8,4%*12/7,which means one is taking the interest to annual interest by proportional method,as this gives 14.40%, in investment every basis point counts.

The difference between the two figures is 0.42% which could translate into millions depending on the amount invested as well as the duration of investment

6 0
3 years ago
In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken
Artist 52 [7]

Answer:

The correct option here is C) units in the beginning work in progress period which were completed , units which were started and completed, and units in ending work in progress.

Explanation:

FIFO ( First in first out ) method is used to take out the cost per unit when doing process costing, in this method it is assumed that the inventory which were not finished during the beginning of period would be first completed and then new shall be started.

To take out the equivalent cost per unit under the FIFO method we will add the units which were completed in the beginning plus units which were started and completed during the period and plus the units which are left in ending work in progress.

5 0
3 years ago
Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key deci
Ksivusya [100]

Answer: Sensitive analysis

Explanation:

Sensitivity analysis this is a financial standard that is used to regulate how target variables can be affected based on changes in other variables which known as input variables. This is also known as what-if or simulation analysis. It is a way used in predicting an outcome of a decision under a known range of variables.

4 0
3 years ago
Nita is a Market Research Analyst who has a retirement plan set up through her employer. Kurt is hired as a Retail Salesperson e
makvit [3.9K]

Answer:

job with benefits

entry-level job

advanced job

part-time job

Explanation:

i got them right :D.

4 0
2 years ago
Information that personally identifies an individual by data such as name, contact information, gender, ethnicity, financial, or
romanna [79]

Answer:

personal

Explanation:

Personal because that is there secret information that other employes/people should not see

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3 years ago
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