Answer:
carry trade
Explanation:
Carry trade can b defined as borrowing funds at a low interest rate and then investing those funds in assets that generate a higher return. This way, you profit will be the difference between the higher rate of return yielded by the asset minus the low interest rate paid for the loan. Carry trade is a type of arbitrage since you are obtaining a good at a certain price (low interest rate) and placing it at a higher price (higher rate of return).
Answer:
y
beta
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Opportunity cost of country X in producing alpha = 300 / 100 = 3 units of beta
Opportunity cost of country Y in producing alpha = 200 /100 = 2 units of beta
Y has a comparative advantage in the production of alpha
Opportunity cost of country X in producing beta = 100/ 300 = 0.3
Opportunity cost of country Y in producing beta = 100/200 = 0.5
X has a comparative advantage in the production of BETA
alpha 3 2
Answer:
time weighted rate of return: 5.36%
Explanation:
We have to calculate the holding rate of return for each month and then mutiply them together:
<u>January:</u>
(119.90 - 116.26)/116.26 = 0.031309135
<u>February:</u>
(123.58-119.9)/119.9 = 0.030692244
<u>March:</u>
(0.41 + 122.08-123.58)/123.58 = - 0.0088194
(1 + Jan) (1 + Feb) (1 + March) = 1.053587547
now we subtract one to get the wanted rate:
time weighted rate of return: 5.36%
