A registered principal must provide the approval for the advertisement if a registered representative wants to market her services as a mutual fund representative for the XYZ funds in a local publication.
Give a brief account on mutual funds.Mutual funds pool shareholder funds in order to invest in securities such as stocks, bonds, money market instruments, and other assets. In order to optimize returns for the fund's investors, knowledgeable money managers disperse the assets in mutual funds.
Through mutual funds, small and relatively individual investors can access professionally managed portfolios of stocks, bonds, and other securities. As a result, each shareholder receives a proportionate share of the fund's gains or losses. Mutual fund performance is typically measured by changes in the fund's total market capitalization, which are obtained from the performance of its underlying investments added together. A vast range of assets are acquired by mutual funds.
Larger financial institutions like Vanguard, Fidelity Investments, Oppenheimer and T. Rowe Price are the majority of mutual funds' parent companies. A mutual fund's fund manager, also referred to as the investment adviser, is obligated by law to operate in the shareholders' best interests.
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Students will research using the internet what a typical day looks like for various types of workers (CEO, general and middle managers, custodians, etc.) in a business of their choice.
Students will develop a short presentation on their findings of how these different working groups are treated and respected and their responsibilities.
Be sure to relate it to the field of business and include requirements, if any, for the job.
The conclusion should include big takeaways from the student’s perspective of what they would change if they were in charge and how their perception has changed regarding the organization that they chose to research.
Answer:
For this presentation, I researched the typical day for various types of workers in a business and found interesting differences in how they are treated and respected in their respective positions.
First, let's look at CEOs. A typical day for a CEO can include attending board meetings, meeting with investors, setting company strategy, and representing the company in public events. CEOs are responsible for the overall success of the company and making important decisions that impact the entire organization. They are typically well-respected and compensated for their role.
Next, let's look at general and middle managers. These individuals are responsible for overseeing specific departments or teams within the organization. A typical day for a general or middle manager can include attending meetings with their team, reviewing performance metrics, and working with other managers to ensure the success of the organization. They are generally respected within their departments and have a good understanding of the day-to-day operations of the business.
Finally, let's look at custodians. A typical day for a custodian can include cleaning the office, restocking supplies, and ensuring the building is in good condition. While custodians may not have the same level of responsibility as CEOs or managers, they are still an important part of the organization and play a crucial role in maintaining a safe and clean work environment. Unfortunately, custodians are sometimes undervalued and may not receive the same level of respect as other positions in the organization.
In terms of job requirements, CEOs typically have extensive business experience and a strong track record of success. General and middle managers typically have a degree in business or a related field and experience in their specific industry. Custodians may not have any formal education requirements, but they should have good communication skills and be able to work independently.
In terms of big takeaways, it's clear that different positions within an organization require different levels of responsibility and expertise. However, it's important to remember that all positions are important and contribute to the overall success of the business. As a manager, I would strive to create a culture of respect and appreciation for all employees, regardless of their position. My perception of the importance of custodians has also changed, and I would ensure that they receive the respect and recognition they deserve for their important work.
Explanation:
is robinhood securities llc an investment or entity that invests, at least partially, in u.s. government, state, or municipal securities which would be exempt from federal and/or state tax?
Robinhood Securities LLC is an investment entity that allows investors to trade stocks, options, ETFs, and cryptocurrencies commission-free through its platform.
It is possible for Robinhood Securities LLC to invest, at least partially, in U.S. government, state, or municipal securities which may be exempt from federal and/or state tax. However, this would depend on the specific investments made by the company and is not a guarantee. It is important to consult with a financial advisor or tax professional to understand the tax implications of any investments made through Robinhood Securities LLC or any other investment platform.
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The concept of _________________ means that as the measure of output goes up, average costs of production decline—at least up to a point.
relative advantage
economies of scale
absolute advantage
comparative advantage
The concept of economies of scale means that as the measure of output goes up, average costs of production decline—at least up to a point.
Therefore, option B is correct.
Economies of scale can be described as a concept in economics which can be regarded as the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time.
It should be noted that internal and external economies of scale are distinguished. Internal economies of scale are reached when a corporation expands production while lowering costs. Outside of a company, external economies of scale exist within an industry.
Thus, external economies of scale may occur when an industry's operational range increases as a result of outside innovations. For instance, a company's costs as well as those of its industry may go down as a result of the development of a stronger transportation network. All businesses within the industry profit when external economies of scale take place.
Therefore, option B is correct.
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When you plan a presentation, how should you make sure you stay on track as you talk?
A. Make a list of general topics and points you want to cover.
B. Write out every word of the presentation on notecards.
C. Memorize every word of the presentation in your head.
D. Have the audience tell you what else you need to talk about.
Answer:
A make a list
Explanation:
Answer:
It's A. Make a list of general topics and points you want to cover.
Explanation: hope it helps ^w^
Melinda walks into a local convenience store to buy chewing gum. She more than likely will employ ____ in deciding to make that purchase.
Answer: routine response behavior
Explanation:
Melinda walks into a local convenience store to buy chewing gum. She more than likely will employ routine response behaviour in deciding to make that purchase.
What is routine response behaviour?Routine response behaviour occurs after a sufficient number of trials or purchases of a particular brand. The decision to again buy the product requires little or no decision-making as the routine choice behaviour becomes habitual with each subsequent purchase. Routine choice behaviour is a characteristic of being loyal to a brand as well.
With the rapid increase in promotion, the problem lies in measuring consumer response. An individual’s response to promotions is indicated by the extent to which promotions play a role in his or her purchase routine concerning a brand. It is important for marketers so that they avoid marketing-related environmental interruptions such as stockouts that could force loyal customers to try their competitor’s brand. In marketing, it is important to understand consumer buying behaviour patterns to increase business and customer loyalty.
The decision-making process of customers has different levels such as extensive problem-solving, limited problem solving etc.
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Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?
Answer:
the answer is undefined because there is no given month but given the information.. the insurance company would have to pay 800$ to replace the TV set.
The insurance company pays zero amount.
What is a renter's insurance policy?A renters insurance policy is a collection of coverages meant to protect tenants who live in a house or flat. After a covered loss, a typical renters insurance policy offers three categories of coverage to help protect you, your property, and your living arrangements.
Given:
Insurance policy costs $20/month
Deductible amount=$1,000
Theft= $800
As the deductible amount is $1000 and the theft amount is $800 which is less than the deductible amount so the insurance company will not pay any amount i.e Zero.
Therefore, the above explanation describes the renter's insurance policy.
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Courts will not take action against a television show that critiques newly-released books for infringement of copyright because _____.
Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and selling the tires are: Direct materials and labor $45; Factory overhead $20; Selling and administrative $15. The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 10,000 tires for $70 each. The order would not require any selling or administrative costs. The purchaser will pay the shipping costs, but Goodstone will have to pay a $100,000 inspection fee in order to be able to make the foreign sale. Accepting the special order will not affect current sales or production. What effect would accepting the special order have on Goodstone's net operating income
Answer:
Goodstone's net operating income will increase by $70,000.
Explanation:
Goodstone Tire Corporation
Analysis of accepting special order
Sales ($70 x 10,000) $700,000
Less Variable Expenses :
Direct materials and labor ($45 x 10,000) $450,000
Variable Factory overhead ($8 x 10,000) $80,000
Inspection fee $100,000 ($630,000)
Net Income (Loss) $70,000
Conclusion
Goodstone's net operating income will increase by $70,000.
Answer:Decrease by $15000
Explanation:
What are the 4 most important components of wellness?
There are five main aspects of personal health: physical, emotional, social, spiritual, and intellectual.
Spiritual WellnessSpiritual strength is that force that drives us to make sacrifices for others, our nation, and the greater good. .
Emotional WellnessEmotional wellness refers to building an awareness of and accepting one's feelings and moods. It includes finding ways to encourage positive thinking and acceptance of oneself.
Physical WellnessPhysical wellness includes expanding your knowledge about your lifestyle and how food, good nutrition and physical activity can be an integral part of your lifestyle.
Social WellnessSocial wellness entails being cognizant of the impact you and your actions have on your community, the society and nature.
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If a firm wants to cut its costs through more efficient production, we should assume that the firm is trying to:
fire its employees.
a.increase its profits.
b.eliminate its competition.
c.buy back its stock.
d.gain control over its market.
When a firm aims to cut costs by becoming more efficient, it is usually trying to increase its profits. It is critical to note that a firm wants to maintain its current productivity levels while lowering the cost of production by becoming more efficient.
Therefore, the correct option is a, "increase its profits."In the business world, profit is a critical factor. A company will generate a profit by lowering costs and increasing revenue. To minimize costs, a business may cut employee benefits, reduce office expenditures, or become more effective in manufacturing.The firm could attain a more efficient production process in a variety of methods. It could, for example, outsource to lower-cost nations, automate parts of its production process, or increase the efficiency of its workers.
The goal of these measures is to cut the costs of production while preserving the same level of output.The term "efficient" means achieving maximum productivity with minimum waste of time, money, and other resources. A firm that has accomplished this will have an edge over its competitors, which will help it expand its market share and profits.
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UNIT 4 LAB
What must a country commit to in order to become a part of the Organization of Economic Cooperation?
How does one’s language force a person to think about time?
How does this difference in language relate to our propensity to save?
What experiments did Chen carry out to come up with these conclusions?
Did anything surprise you about this video? Why or why not?
1. What must country commit to in order to become a part of the Organization of Economic Cooperation?
- The affirmed common commitment of democracy, open markets, and free trade.
2. How does one’s language force a person to think about time?
- When you use different words in different tenses, it makes you think about the time these events took place, saying “I walked yesterday” is past tense but, “I’m walking” is present tense.
3. How does this difference in language relate to our propensity to save?
- Speaking futureless language, you will speak about time identically meaning you will feel as they are identical, it increases your propensity to save.
4. What experiments did Chen carry out to come up with these conclusions?
- Chen came up with knowledge of his own ideas to figure out the conclusion.
5. Did anything surprise you about this video? Why or why not?
- No. Everything made sense, everything had great conclusions talking about past, present, and future tenses.
How does one’s language force a person to think about time? that must a country commit to in order to become a part of the Organization of Economic Cooperation. The correct option is A.
What are the OECD guidelines?Governmental suggestions on ethical corporate behavior are contained in the OECD Guidelines for Multinational Enterprises (OECD Guidelines). The OECD Guidelines define expectations for ethical business behavior in relation to a number of topics, including the environment, labor rights, and human rights.
Essentially, there are two fundamental characteristics that nations must meet in order to join the OECD: democratic societies devoted to the rule of law and the preservation of human rights; and open, transparent, free-market economies.
Thus, the ideal selection is option A.
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What does the word cost mean in the context, "understanding their costs and
income, budgeting to ensure all their expenses are covered is a financially
tsresponsible behavior"?
In the context of the statement, "costs" refers to the expenses incurred by an individual or organization.
What is meaning of cost as used?Cost as used can include fixed expenses, such as rent or mortgage payments, and variable expenses, such as food or transportation costs.
When the statement says "understanding their costs and income," it means understanding all of the expenses that need to be paid, as well as the amount of money coming in, such as from a salary or business profits.
The idea is that budgeting to ensure all costs are covered is a financially responsible behavior, because it helps ensure that all bills are paid and debts are managed, without overspending or accruing unnecessary debt.
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Suppose that in a year, an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers. ⦁ Graph the production possibilities curve for the two countries. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graph.
As can be seen in the graph, if China spends half the time producing computers and a half producing shirts, it will be at point (C).
Similarly, if the U.S. spends half the time producing shirts and the other half producing computers, it will be at point (U).
Why is graphing of production possibilities curve useful?It is important in economics because its shows the maximum combination of two goods that an economy can produce given its resources and technology. It illustrates the concept of trade-offs, as producing more of one good means sacrificing the production of the other good.
Its helps to shows the efficient points on the curve, where the economy is producing at its maximum potential given its resources and technology. Points inside the curve represent inefficient production, while points outside the curve are unattainable with the current resources and technology.
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oligopolies can end up looking like competitive markets if the number of firms is
Oligopolies can end up looking like competitive markets if the number of firms is relatively high, leading to increased competition and reduced market power for individual firms.
In an oligopoly, a small number of firms dominate the market, which can lead to collusion and higher prices. However, if the number of firms in the market increases, there may be more intense competition, which can lead to lower prices and increased efficiency. This can cause the market to resemble a competitive market, where no single firm has significant market power. It is important to note, however, that oligopolies may still have barriers to entry that prevent new firms from entering the market, and firms may still engage in strategic behavior to gain a competitive advantage.
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case 5.1, jane doe 1 v. uber technologies, inc. (2016), involved the question of respondeat superior.
In the case of Jane Doe 1 v. Uber Technologies, Inc. (2016), the plaintiff alleged that she was sexually assaulted by an Uber driver. The question of respondeat superior was central to the case.
Respondeat superior is a legal doctrine that holds employers liable for the actions of their employees if those actions are performed within the scope of their employment. In this case, the plaintiff argued that Uber was liable for the actions of its driver because he was acting as an Uber driver at the time of the assault.
Uber, on the other hand, argued that the driver was an independent contractor, not an employee, and therefore Uber could not be held liable under respondeat superior. Uber also argued that the driver's actions were outside the scope of his employment, as the assault was a criminal act that was not related to his duties as an Uber driver.
Ultimately, the court found that the driver was acting within the scope of his employment at the time of the assault and that Uber could be held liable under respondeat superior. The court also rejected Uber's argument that the driver was an independent contractor, finding that Uber had significant control over the driver's actions and therefore he should be considered an employee.
The case had significant implications for the "gig economy" and the classification of workers as independent contractors or employees. It also highlighted the importance of respondeat superior in holding employers accountable for the actions of their employees.
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. CASE 5.1, Jane Doe 1 v. Uber Technologies, Inc. (2016), involved the question of respondeat superior.
If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?
Bonds acquired at premiums often have lower yields to maturity than bonds purchased at market rates. This is further explained below.
What is a bond?Generally, Bonds are financial securities that reflect loans made to the issuer by the bondholders themselves. When it comes to borrowing money, governments (at all levels) and companies (of all sizes) often turn to bonds.
In conclusion, If you buy a bond at a discount, the yield to maturity will be lower than its coupon rate.
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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon rate of 6.9 percent paid annually. If the yield to maturity is 8 percent, what is the current price of the bond?
Answer:
€905.85
Explanation:
The current price of the bond is its Present Value (PV) this is calculated as follows :
Fv = €1,000
n = 15
Pmt = €1,000 × 6.9% = $69
i = 8%
P/yr = 1
Pv = ?
Using a financial calculator to enter the values as above, the PV is €905.85.
Thus, the current price of the bond is €905.85.
According to the law of demand, as prices increase, the quantity demanded by people .
Answer:
Quantity supplied will increase
Answer: decreases
Explanation: right on edmentum
Question #4
Multiple Choice
Values are principles that typically guide or influence an individual's decision-making process. Two
areas of life most often affected or influenced by values include
emotions and reactions
decisions and responses
physical health and feelings
attitudes and behaviors
The two spheres of life that are most frequently impacted or altered by values are attitudes and behaviors. The correct response is option (4).
Define attitudes and behaviors.An individual's attitude is defined as their mental perspective, or how they feel or think about someone or something. Behavior describes the actions, motions, conduct, or behaviors of an individual or a group toward other individuals. built upon. Experience and observation.
When people put more focus on their own attitudes and feelings, they tend to act more in line with those feelings, therefore there is a link between attitude and behavior. Additionally, when people feel greater responsibility for their individual actions rather than the actions of a collective, their opinions are more consistent with their behavior.
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the optimal mix of output is the most desirable combination of output attainable with existing
The superior mix of output is the most suitable aggregate of output manageable with current resources, technology, and social values.
Is the market mix of output and the gold standard mix of output continually the same?The market mix of output and the gold standard combine of output are continually the same. The market tends to underproduce public goods. Public choice idea emphasizes the function of self-interest in public decision-making.
Market failure implies that the market mechanism: Leads the economy to the incorrect combine of output. Market failure leads to: Public items being under-produced.
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To offset a depreciation in the U.5. dollar, the Federal Reserye can adopt a restrictive monetary policy shat boosis interest rates in ife United 4 ates felative to those of fareign countries. The Exa
To offset a depreciation in the U.S. dollar, the Federal Reserve can adopt a restrictive monetary policy that boosts interest rates in the United States relative to those of foreign countries. When the United States dollar depreciates, it becomes less expensive for foreign buyers to purchase U.S. goods and services.
A depreciation of the dollar can lead to higher inflation in the United States as domestic importers have to pay more for imported goods, which leads to an increase in the price of goods and services. The Federal Reserve can use monetary policy to counteract the depreciation of the U.S. dollar. If the Federal Reserve increases interest rates, then it becomes more expensive for consumers to borrow money and to spend money. The higher interest rates can lead to a decrease in consumer spending, which can decrease the demand for goods and services, and can lead to lower inflation in the United States.
The adoption of a restrictive monetary policy, such as an increase in interest rates, can also lead to an appreciation of the U.S. dollar. An appreciation of the U.S. dollar means that the U.S. dollar has become more valuable relative to other currencies, which makes it more expensive for foreign buyers to purchase U.S. goods and services. The Federal Reserve can adopt a restrictive monetary policy that boosts interest rates in the United States relative to those of foreign countries to counteract a depreciation of the U.S. dollar.
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2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?
Answer:
Davidson describes two philosophies that are represented each by the Republican Party and by the Democratic Party.
Republicans believe, according to Davidson, that the economy works best when the state keeps its hands off it. Republicans view a free market economy without government intervention as essentially a perfect machine that can coordinate the interests of vastly different goups of people (this is the concept of the invisible hand, developed by Adam Smith).
The Democrats, on the other hand, while seeing Capitalism as the most efficient economic system, believe that the capitalist economy needs to be regulated by the state, because otherwise, a free market generates undesirable effects like externalities and economic inequality.
According to Davidson, the republicans and the democrats as philosophies are two fundamentally different economic philosophies that impact the debt crisis facing the US. I agree more with the republican side of things, life can't always come with an aim of everything being "equal" and "fair".
which firm (brand) is not an example of a pyramid scheme? A. Mary Kay B. Costco C.BIM
Mary Kay is not an example of a pyramid scheme. Investors are attracted by the initial promoters, who then bring in more investors, and so forth. Because there are more investors at each level, the scheme is referred to as a "pyramid." Pyramid schemes are a waste of time and money in addition to being illegal. The answer is OPTION A.
Pyramid schemes frequently fail when the pool of potential recruits runs out because they depend on recruiting new members to generate investors. an online music store that attracted people who paid for the right to sell music while rewarding employees for bringing in new customers. The bonuses had nothing to do with product sales in any way. The answer is OPTION A.
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What would CRM software help you
do?
CRM software can help you in the following ways.
They can help in streamlining deals and marketing efforts, manage client connections, and see to client satisfaction.Also, the capability to track client relations and data can help businesses optimize their operations and identify areas for improvement.What is CRM software?CRM software or Customer Relationship Management software is an important tool which was created to help businesses manage their relations with customers and potential customers.
It allows businesses to store client data like contact information, purchase history, and communication preferences, all in one centralized location.
This data gotten from the software can be analyzed and used to perceive how a customer behaves, his preferences, and needs.
Thus, a CRM tool can help businesses cultivate strong relations with their customers and drive long- term growth.
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if the fed raises the interest rate, the first effect in an as/ad figure is a ________ shift of the ________ curve.
If the Federal Reserve (Fed) raises the interest rate, the first effect in an AS/AD (Aggregate Supply/Aggregate Demand) figure is a leftward shift of the Aggregate Demand (AD) curve.
An increase in the interest rate by the Fed typically leads to a decrease in investment spending and borrowing by businesses and individuals. Higher interest rates make borrowing more expensive, which reduces the demand for loans and investments. This decrease in investment spending, in turn, reduces aggregate demand in the economy. As a result, the AD curve shifts to the left, indicating a decrease in overall spending and demand for goods and services in the economy. This shift reflects the initial impact of the higher interest rate on the AD curve in the AS/AD figure.
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Determinants of Interest Rates Suppose you and most other investors expect the inflation rate to be 7% next year, to fall to 4% during the following year, and then to remain at a rate of 3% thereafter. Assume that the real risk-free rate, r*, will remain at 2% and that maturity risk premiums on Treasury securities rise from zero on very short-term securities (those that mature in a few days) to a level of 0.2 percentage points for 1-year securities. Furthermore, maturity risk premiums increase 0.2 percentage points for each year to maturity, up to a limit of 1.0 percentage point on 5-year or longer-term T-notes and T-bonds. Calculate the interest rate on 1-, 2-, 3-, 4-, 5-, 10, and 20-year Treasury securities. Round your answer to two decimal places. Years to Maturity Interest rate 1 % 2 % 3 % 4 % 5 % 10 % 20 %
Rounded to two decimal places, the interest rates on the Treasury securities are as follows:
1-year: 9.20%
2-year: 7.90%
3-year: 8.10%
4-year: 8.30%
5-year: 8.50%
10-year: 6.00%
20-year: 6.00%
To calculate the interest rates on Treasury securities with different maturities, we need to consider the components that affect the interest rates: the real risk-free rate (r*), expected inflation rates, and maturity risk premiums.
Given the provided information, we can calculate the interest rates as follows:
1-year Treasury security:
Interest rate = r* + inflation rate + maturity risk premium
Interest rate = 2% + 7% + 0.2%
Interest rate = 9.2%
2-year Treasury security:
Interest rate = r* + average inflation rate + maturity risk premium
Average inflation rate = (7% + 4%) / 2 = 5.5%
Interest rate = 2% + 5.5% + 0.4%
Interest rate = 7.9%
3-year Treasury security:
Interest rate = r* + average inflation rate + maturity risk premium
Interest rate = 2% + 5.5% + 0.6%
Interest rate = 8.1%
4-year Treasury security:
Interest rate = r* + average inflation rate + maturity risk premium
Interest rate = 2% + 5.5% + 0.8%
Interest rate = 8.3%
5-year Treasury security:
Interest rate = r* + average inflation rate + maturity risk premium
Interest rate = 2% + 5.5% + 1.0%
Interest rate = 8.5%
10-year Treasury security:
Interest rate = r* + long-term inflation rate + maturity risk premium
Interest rate = 2% + 3% + 1.0%
Interest rate = 6.0%
20-year Treasury security:
Interest rate = r* + long-term inflation rate + maturity risk premium
Interest rate = 2% + 3% + 1.0%
Interest rate = 6.0%
Rounded to two decimal places, the interest rates on the Treasury securities are as follows:
1-year: 9.20%
2-year: 7.90%
3-year: 8.10%
4-year: 8.30%
5-year: 8.50%
10-year: 6.00%
20-year: 6.00%
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Using the pie chart in your reading, what percentage of our total tax dollars is used by the federal gov. to fund the social security and Medicare programs?
Answer: 38%
The percentage spent on Social Security and Medicare of the total is = 28.32% of the Total Spending.
The total amount of funds used by the Federal Government for social security and Medicare in the year 2020 is $1.869 Trillion.
The total Medicare and Social Security spending:
Medicare ($ 769,000,000,000) + Social Security ($ 1,100,000,000,000) =
Total ($ 1,869,000,000,000) or $1.869 Trillion
The percentage of the Medicare and Social Security spending as a percentage of the total spend:
The Total Spend = $6.6 Trillion (or $6,600,000,000,000)
The percentage spent on Social Security and Medicare of the total is:
Formula = (Value / Total) x 100%
= ($1.869 Trilion/$6.6 Trillion) x 100%
= ($ 1,869,000,000,000/$6,600,000,000,000) x 100%
= 0.28318181818 X 100%
= 28.32%
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Julio bought three put option contracts on Brad Clooney stock with an exercise price of $27.50. The option was bought at $1.10 each. The stock price on the expiration day is $29.30. This investment's net profit/loss is. O -$330 O $140 O $210 O $0 O $70
Given that Julio bought three put option contracts on Brad Clooney stock with an exercise price of $27.50, Net profit/loss is option A) -$330
The option was bought at $1.10 each. The stock price on the expiration day is $29.30.We can calculate the net profit/loss using the formula:
Net Profit/Loss = Payoff - Premium paid
Payoff for a put option = max(0, Exercise price - stock price)
Premium paid = Option price * Number of contracts * contract size
Putting the given values in the above formula, we get:
Payoff = 3 * [max(0, $27.50 - $29.30)] = 3 * max(0, -$1.80)
= 0 Premium paid
= $1.10 * 3 * 100 = $330
Therefore, Net Profit/Loss = Payoff - Premium paid
= $0 - $330
= -$330
Thus, the investment's net profit/loss is -$330.
Option value for a put option: A put option is a financial instrument that gives the owner the right, but not the obligation, to sell an underlying asset at a specific price, within a specific time frame. A put option value is based on the difference between the strike price and the current stock price. If the stock price is below the strike price, the option is "in the money." If the stock price is above the strike price, the option is "out of the money." If the stock price is equal to the strike price, the option is "at the money."
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According to the video, which qualities do Insurance Underwriters need? Check all that apply.
communication skills
customer service skills
computer skills
knowledge of sales strategies
an outgoing attitude
a background in finance
Answer:
The correct answers are (A) (C) (F)
Explanation:
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A communication skills, C computer skills, F a background in finance
Explanation:
Investor a intends to invest $850,000 in a new business. the financial projections show that during the first year of operations the business will generate $70,000 in profit for the year. in order to finance the investment, investor a has applied for a business loan with an interest rate of 7%. required: 1.) calculate the expected return on assets. (state as a percentage) 2.) state the cost of financing. (state as a percentage) 3.) should investor a invest in the new business? why or why not?
the expected return on assets will be = 1.24%
State the cost of financing = 98.86%
Investor a should invest in the existing business because it has a profitablity index greater than 1
Capital = $850000
Profit = $70000
Loan with 7% interest
Amount to be paid back = capital + interest
7% of $850000
= (7/100)×$850000
= 0.07× $8500
= $59500
Amount to be paid back = $850000 + $59500
= $909500
Expected return on the investment = (capital + profit) - Amount to be paid back
= (850000 + 70000) - 909500
= 920000 - 909500
= $10500
As percentage
(Expected return on the investment/ Amount invested) × 100%
= (10500/85000)×100%
= 0.01235 × 100%
= 1.24%
2) The cost of financing the project
Cost of financing the project = capital + interest
7% of $850000
= (7/100)×$850000
= 0.07× $8500
= $59500
Cost of financing the project = $850000 + $59500
= $909500
As percentage
(Cost of financing the project/(capita + profit)) × 100%
= (909500/(850000 + 70000))×100%
=(909500/920000)×100%
= (0.9886) ×100%
= 98.86%
3) profitability index = (initial investment + net present value)/ initial investment
= (850000 + 70000)/850000
= 920000 / 850000
= 1.08
Since the profitability index is greater than 1, it means the investment creates value therefore the investor can continue with the investment
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