Answer:
E.In equilibrium, the expected return on Stock A will be greater than that on B.
Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.
IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.
Answer:
Rodgers can hedge its foreign risk by using a Contract to buy Yuan in the futures market today at an agreed upon price in 90 days.
Explanation:
Solution
Since Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan, so he has to hedge his exchange rate risk by buying or purchasing Yuan future contract for 90 days.
So, Rodgers Incorporation should make a contract to buy Yuan in the future market today at an agreed price in 90 days.
Answer: Polycentric staffing model
Explanation:
The staffing model employed by Azus is the polycentric staffing model. This is an approach whereby the nationals of a particular country are employed in the central offices while foreigners are employed into their subsidiaries overseas. The foreigner are locals in their countey.
The advantages are that hiring locals are less costly and can improve employee morale and increase in productivity.
Answer:
$86,000
Explanation:
The opportunity cost is an economic concept. It is the cost of the alternative foregone. Accounting profit does not take into cognizance the alternative foregone.
It only considers the explicit cost incurred in the process of making sales or generating revenue.
As such,
Accounting profit = $128,000 - $42,000
= $86,000
Answer:
B) GNMAs are considered to be the riskiest of the agency issues
Explanation:
The Ginnie Mae or GNMA pass through securities are mortgage backed. The Great recession taught us that mortgage backed securities are not always 100% secure, but they are still considered secure investments basically because they are guaranteed by the US government. They are similar to the securities sold by the US Treasury.
Ginnie Mae basically guarantees mortgages using federal funds (from Federal Housing Administration and Department of Veterans Affairs).
