Answers
Statistical arbitrage uses quantitative systems to uncover many perceived misalignments in relative profit; it differs from pure arbitrage in that it is not truly risk-free.
The simultaneous establishment of a long and short position to profit from inefficient pricing in correlated assets makes statistical arbitrage methods market neutral. For instance, a fund manager might open a long position in Coca-Cola and a short position in Pepsi if they think Coca-Cola is undervalued and Pepsi is overvalued. Statistical arbitrage is frequently referred to as "pairs trading" by investors.
Statistical arbitrage is loosely defined as involving more than two equities. The idea can be applied by investors to a collection of connected securities. Additionally, just because two stocks are in different industries does not preclude correlation between them. For instance, there are frequently periods of high correlation between the stocks of the consumer cyclical Harley Davidson and the financial stock Citigroup.
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Related Questions
Nancy is considering whether her toy manufacturing business should develop its own brand. Which is a company reward Nancy can expect from branding?
Answers
Answer: a. Brands enhance loyalty.
Explanation:
Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.
Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.
Innovate ways where you can prove the law of action-reaction.
Answers
The ways where you as a person can prove the law of action-reaction are:
When a player pushes the ball forward with force while holding it, the ball pushes back on the player's hand.Student tugs on desk, which tugs back on student (This is how you can "pull" yourself forward.)How can the law of action and reaction be proven?When a person pushes against a wall (action force), the wall pushes back with an equal and opposing force (reaction force). The Space Shuttle lifts (there is no slingshot involved!) because the hot gases push out hot gases (action force) and exert a force on the Space Shuttle engines (reaction force).
Therefore, it can also be shown through Swimming. With the use of the hands, a forward-swimming individual forces the water to move backward. A response force is created as a result of the action force that the individual is exerting.
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Monument Health buys $400,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Monument terms of 1/5, net 15. Currently, the hospital is paying the supplier the full amount due on Day 15, but it is considering taking the discount, paying on Day 5 and replacing the trade credit with a bank loan that has a 12 percent rate. Assume 360 days per year.
1. What is the amount of free trade credit that the organization obtains from Cardinal Health? Format is $xx,xxx.xx
2. What is the total amount of trade credit offered by Cardinal? Format is $xx,xxx.xx
3. What is the approximate annual cost of the costly trade credit? Format is xx.xx%
4. Should the organization replace a portion of the trade credit with the bank loan? Format is Yes or No
5. If the bank loan is used, how much of the trade credit should be replaced?
Answers
1. The amount of the free trade credit that Monument Health obtains from Cardinal Health is $400,000.00.
2. The total amount of trade credit offered by Cardinal is $404,000.00.
3. The approximate annual cost of the costly trade credit is 72%.
4. No. Monument Health should not replace a portion of the trade credit with a bank loan.
5. If the bank loan is used, the trade credit should be replaced by $133,333.00.
What is trade credit?Trade credit is a business arrangement that allows the buyer to buy goods in exchange for later payment.
Giving trade credit is costly to the seller but profitable to the buyer, especially with the offer of cash discounts.
Data and Calculations:Gross prices = $400,000
Terms of trade = 1/5, net 15
Bank loan = $400,000
Loan interest rate = 12%
Days per year = 360 days
Cost of Trade Credit for 5 days = $4,000.00 ($400,000 x 1%)
Annualized cost = 72% (1%/5 x 360)
Cost of bank loan for 10 days = $1,333.33 ($400,000 x 12% x 10/360)
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With total reserves of $50,000 and a required
reserve ratio of 10 percent, potential
deposit creation for the banking
system is equal to :
O $20,000
O $50,000
O $80,000
O $300,000
Answers
With total reserves of $50,000 and a required reserve ratio of 10 percent, potential deposit creation for the banking system is equal to $300,000. The correct option is d.
It required reserves = transaction deposits * required reserve ratio
=200000*0.1=20000
Excess reserves =total reserves -required reserves =50000-20000
=30000
Money multiplier =1/required reserve ratio =1/0.1=10
Potential deposit creation =excess reserves * multiplier =30000*10=300000
It is $300,000.
The reserve ratio is the percentage of reservable liabilities the advertisement banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio. The reserve requirement is the minimum amount of reserves which a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
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You just won the $114 million ultimate lotto jackpot. Your winnings will be paid as $3,800,000 per year for the next 30 years. If the appropriate interest rate is 7.1% what is the value of your windfall?
Answers
Answer:
$46,684,511.77
Explanation:
To determine the value of the windfall, we would first determine the future value of the windfall and then determine the present value
Future value = annuity x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
FV = P (1 + r) n
FV = Future value
P = Present value
R = interest rate
N = number of years
Annuity factor = [(1.071)^30 - 1] / 0.071 = 96.177470
FV = $3,800,000 x 96.177470 = 365,474,386
Present value = FV x ( 1 +r)^-n
365,474,386 x (1.071)^-30 = $46,684,511.77
hello anyone know carson lueders
Answers
Answer:
Im not sure who he is
Explanation:
It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (such as 7-Eleven) than at a large, full-service grocery store. Which of the following persons is most likely to buy these items at a convenience store?
a. a person who is out of work 70.
b. a person with a high opportunity cost of time 71
c. a person with a low opportunity cost of time 72
d. a person who works at a full-service grocery store
Answers
Answer:
a person who works at a full-service grocery store
which of the following are basic functions performed by an accounting system? (select all that apply.)
Answers
The basic functions performed by an accounting system are:
A. To interpret and record the effects of business transactions.
C. To summarize and communicate information to decision makers.
An accounting system is a set of processes and procedures that are used to collect, process, and communicate financial information about an organization. The two basic functions performed by an accounting system are to interpret and record the effects of business transactions, and to summarize and communicate information to decision makers. By recording transactions and creating financial statements and reports, an accounting system provides information that is essential for making informed business decisions.
"
Complete question
which of the following are basic functions performed by an accounting system? (select all that apply.)
A. To interpret and record the effects of business transactions
B. To store clients data
C.To summarize and communicate information to decision makers.
"
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Suppose that each week Fiona buys 16 peaches and 4 apples at her local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
multiple choice
The law of diminishing marginal utility does not hold for Fiona.
Fiona is not maximizing her utility.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be greater than her marginal utility from the 4th apple she buys.
Answers
If Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that C. If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
What is marginal utility?Marginal utility describes the benefit derived from the consumption of one additional unit of a product or service.
The marginal utility can be computed using this formula:
Marginal utility = total utility difference/quantity of goods difference.
This means that marginal utility is equal to the change in total utility divided by the change in the number of goods consumed.
Thus, if Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that Option C is correct.
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If Congress wanted to use contractionary fiscal policy to combat inflation, they wouldQuestion 10 options:Raise taxes and cut spendingCut taxes and raise spendingRaise taxes and raise spendingCut taxes and cut spendingDestroy moneyPrint money
Answers
If Congress wished to battle inflation through contractionary fiscal policy, they would a) raise taxes and slash spending.
A contractionary policy is a monetary measure used by a central bank to restrict government spending or the rate of monetary expansion. It is a macroeconomic measure used to control growing inflation.
The main contractionary measures used by the US government include raising interest rates, boosting bank reserve requirements, and selling government securities. Contractionary measures are intended to prevent potential capital market distortions.
High inflation from a rising money supply, unjustified asset prices, or crowding-out effects, in which a rise in interest rates leads to a fall in private investment spending, dampening the initial increase in total investment spending, are examples of distortions.
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Correct question:
If Congress wanted to use contractionary fiscal policy to combat inflation, they would
a) Raise taxes and cut spending
b) Cut taxes and raise spending
c) Raise taxes and raise spending
d) Cut taxes and cut spending
e) Destroy money
f) Print money
Lucy's Music Emporium opened its doors on January 1, 2015, and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 20 years, but in December 2015 management realized that the assets would last for only 15 years. The firm's accountants plan to report the 2015 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements? a. The firm's reported 2015 earnings per share would increase. b. The firm's EBIT would increase. c. The firm's net liabilities would increase. d. The firm's reported net fixed assets would increase.
Answers
Answer:
The firm's cash position in 2015 and 2016 would increase.
Explanation:
In the case when the life of an asset would decrease that represents the depreciation would rise and if the depreciation rise so the EBIT and EPS would reduced and in the case when the EBIT reduced, so automatically the tax expense is also reduce
So, the cash position of the firm woud increase
Hence, the above represents the answer
the unemployment rate includes marginally attached workers and underemployed workers. t or f
Answers
The unemployment rate includes marginally attached workers and underemployed workers False.
What is the unemployment rate made up of?The unemployment rate for any location is calculated by dividing the number of locals who are unemployed and actively looking for work by the total local workforce.
How is the unemployment rate calculated?A individual must be 16 years old and have been available for full-time employment for the previous four weeks in order to be declared jobless. During this time, the person ought to be actively hunting for work.
Who is included in the U-3 unemployment rate?All unemployed people who are available to accept a job and have actively looked for employment in the past four weeks are included in the official definition of unemployment (as measured in the CPS by U-3 in the U-1 to U-6 range of choices).
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___________ is a way of saving a file so it can be used by a different program. A. Selecting B. Exporting C. Citing D. Formatting Please select the best answer from the choices provided A B C D Mark this and return
Answers
Answer:
B. Exporting
Explanation:
A company has a beta of 2.91. If the market return is expected to be 16% and the risk-free rate is 8%, what is
the company's risk premium?
Answers
The additional return investors receive over the risk-free rate in exchange for investing in risky assets is known as the risk premium. The company's risk premium will be 24.90%.
What Are the Components of a Risk Premium?The extra return over the risk-free rate that investors need in order to make up for the increased apprehension associated with hazardous assets is known as the risk premium. Business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk are the five key hazards that make up the risk premium.
All five of these risk variables have the potential to lower returns, thus investors must be fairly paid for taking them on. Business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk are the five key hazards that make up the risk premium.
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The three legal forms of business ownership are _____.
Answers
Answer:
sole proprietorship, partnership, and corporation,
Explanation:
A female employee brings effective insight into how the clients have been involved in the change process previously. How do men and women differ in their leadership styles?
Answers
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Women use more participative leadership.
b) Men have higher emotional intelligence.
c) None of these answers are correct.
d) Men are less harsh when they punish their subordinates.
e) Men make fewer decisions on their own.
And the correct answer is the option A: Women use more participative leadership.
Explanation:
To begin with, there is a scientific study that proves that when it comes to terms of leadership the female participants tend to be more participative regarding subjects of decision making process and taking ideas from others and work as a team, like it should be. Meanwhile the male participants tend to be in their majority more centralized when it comes to decide every aspect of what it has to be done. And that is in part because of the personality of each one due to the fact that male tend to be more dominant because of biology reasons then they make decisions without consulting with other while women take the right way and involves every member in order to take the final decision.
When coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments are
Answers
Under section 2 of additional coverages of Homeowners policy, the payments provided are
Claim expensesFirst aid expensesDamage coverageLoss assessment chargesLiability for damage to third personDamage to property of others ( $1000)Section II (liability coverage) of a homeowners insurance policy provides protection under three coverages.
Coverage E (Personal Liability) coverage in the event that a claim is launched against the insured for physical injury or property damage caused by the insured's acts or inactions.
It deals with numerous fees and coverages that people must pay.
Therefore, w hen coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments that are made is explained.
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Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations experience an increase in gross investment (I) of $100 million at their existing GDP levels. Instructions: In part a, enter your answers for changes in income as a whole number and multiplier answers to 2 decimal places. In part b, round your answers to 2 decimal places. a. Considering the multiplier effect, what will be the overall increase in income (Y) for each nation
Answers
Answer: See explanation
Explanation:
The increase in income for Spendia will be:
= 1 / (1 - MPC)
where MPC = 0.8
= 1 / (1 - 0.8)
= 1 / 0.2
= 5
Increase in income = Gross investment × multiplier
= $100 × 5
= $500 million
The increase in income for Savia will be:
= 1 / (1 - MPC)
where MPC = 0.5
= 1 / (1 - 0.5)
= 1 / 0.5
= 2
Increase in income = Gross investment × multiplier
= $100 × 2
= $200 million
The political candidates keep talking to the citizens about the possibility of a recession what would most likely happen if a country experience a recession
Answers
The thing that would MOST likely happen in this case if a country experiences a recession is D.Businesses will suffer from decreased sales and profits, eventually leading to closure
What is recession ?Recession, in economics, can be described as the downward trend in the business cycle.
Itshouldbe nopted that this can be seen as the decline in production and employment, whereby the incomes and spending of households to decline and as a result of thisthere would be hunger sa well as hardship in the country for this cause.
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missig part
What would MOST likely happen if a country experiences a recession?
A.
Feeling confident in the economy, people will begin to spend money more freely.
B.
Jobs will be more plentiful, and companies will be doing a lot of hiring.
C.
Families will start to purchase larger and more expensive homes.
D.
Businesses will suffer from decreased sales and profits, eventually leading to
Ginger feels like she is very qualified for a Revenue job. Which qualifications does Ginger most likely have?
foreign language fluency, communication skills, and teamwork
physical fitness, stress management, and communication skills
public speaking skills, stress management, and debating skills
integrity, ability to analyze tax forms, and good math skills
Answers
integrity, ability to analyze tax forms, and good math skills.
Answer:
integrity, ability to analyze tax forms, and good math skills.
Explanation:
Denzel Corporation is planning to issue bonds with a face value of $730,000 and a coupon rate of 7.5 percent. The bonds mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Required:
1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year.
3. What bonds payable amount will Denzel report on its June 30 balance sheet?
Answers
1. and 2. The journal entries to record the issuance of the bonds on January 1 and the interest payment on June 30 are as follows:
Journal Entries:January 1 Debit Cash $696,236
Debit Bond Discounts $33,764
Credit Bonds Payable $730,000
To record the issuance of the bonds.June 30 Debit Interest Expense $29,590
Credit Bonds Amortization $2,215
Credit Cash $27,375
To record the first payment of interest.3. The Bonds Payable on June 30 will be reported in the balance sheet as $698,451.
Bond face value = $730,000
Bonds proceeds = $696,236
Bond discount = $33,764 ($730,000 - $696,236)
Coupon rate = 7.5%
Market rate = 8.5%
Bond maturity period = 6 years
Interest payment = semiannually
Amortization method = Effective interest
N (# of periods) = 12 (6 x 2)
I/Y (Interest per year) = 8.5%
PMT (Periodic Payment) = $27,375
FV (Future Value) = $730,000
Results:
PV = $696,236.06
Sum of all periodic payments = $328,500.00
Total Interest = $362,263.94
Transaction Analysis:January 1 Cash $696,236 Bond Discounts $33,764 Bonds Payable $730,000
June 30 Interest Expense $29,590 Bonds Amortization $2,215 Cash $27,375
Bonds Payable on June 30 = $698,451 ($696,236 + $2,215)
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An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value
Answers
Answer:
Present value=Cash flows*Present value of discounting factor(rate%,time period)
=50/1.07+50/1.07^2+50/1.07^3+250/1.07^4+400/1.07^5+600/1.07^6
=$1006.94(Approx)
Future value=1006.94*(1.07)^6
=$1511.14(Approx).
Explanation:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Creative and innovative
Answers
A creative innovation is bringing about something unique and different.
What is creativity?Creativity is the ability to imagine something unique or new that have not been in existence.
It could also be a modification to what have been existing before.
Therefore, A creative innovation is bringing about something unique and different.
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Dylan wants to invest his money in a way that involves less risk and good returns. What should he do?
Dylan should blank his investments to ensure a stable rate of return. He should also choose to invest in blank to ensure less risk and good returns.
Blank 1:
increase
decrease
derisify
Blank 2:
real estate
speculative stock
TIPS
Answers
was this ever answered?
Explain the advantages of a trade agreement and how it might impact a company like Red Fish–Blue Fish
Answers
The advantages of a trade agreement is that it would help in the removal of all trade tariffs and restrictions between nations.
What is a trade agreement?This is the term that is used to refer to the ease of carrying out trade between two countries or more. Trade agreements are able to help nations by ensuring that they would remove all tariffs and barriers that are known to impede trade.
With the existence of such an agreement, Blue fish Red fish would be able to export their goods freely and easily to other nations and still import the resources that they need.
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Please help ASAP giving BRAINLIEST , Did I get this correct?
Answers
Answer:
No, in my opinion I would choose:
A) the properties of free-market system that determine what the outcomes will be.
Explanation:
That would be my answer because the definition of market forces is "the economic factors affecting the price of, demand for, and availability of a commodity."(off the internet) and the answer which fits that definition the most in my opinion is A.
That would be my answer at least.
Hope this helps!
What is a direct consequence of a small business using deceptive advertising practices?
O loss of quality employees
O fines and/or lawsuits
O paying higher business taxes
Oowing workers' compensation
Answers
Answer:
fines and/or lawsuits
Explanation:
The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers
Calculate the required rate of return for Everest Expeditions Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 1.00, and (5) its realized rate of return has averaged 15.0% over the last 5 years. a. 12.00% b. 11.40% c. 10.29% d. 10.83% e. 12.60%
Answers
Answer:
a. 12.00%
Explanation:
The computation of the required rate of return is shown below:
As we know that
Required rate of return = Nominal risk free rate of return + Market risk premium
where,
Nominal risk free rate of return is
= Risk free rate of return + inflation rate
= 3% + 4%
= 7%
And, the market risk premium is 5%
So, the required rate of return is
= 7% + 5%
= 12%
We simply applied the above formula
Why are credit card companies more willing to offer a young person a secured credit card than an unsecured card?
Answers
Answer: I work at a bank and we offer young person a secured card than unsecured card because people tend to steal a young persons card more than a middle aged man or woman, because people think it is just more effortless I guess.
Explanation:
Question 6
(6 Marks)
Entity Z is trying to obtain a cost estimate for the costs of repairs. The following monthly repair costs
have been recorded for the past six months.
Plack Company is a manufacturing company that makes and sells a single product. The following
information relates to the company's manufacturing operations in the next financial year.
->
Opening and closing stock:
Production:-
Sales:
Fixed production overheads:
Fixed sales overheads:
Nil
18,000 units-unit manufactured 3000
15,000 units Units sold,
Closing
Inver
R72,000
Using absorption costing, the company has calculated that the budgeted profit for the year will be
R43,000.
>
Marginal Absorption
Required:
What would be the budgeted profit if marginal costing is used, instead of absorption costing?
Answers
The budgeted profit using marginal costing would be -R12,000.
How to calculate the costUsing the information provided:
Opening stock = 0
Production = 18,000 units
Closing stock = 0
Fixed production overheads = R72,000
Total variable manufacturing costs = 0 + 18,000 - 0 - R72,000 = -54,000 (negative value due to fixed production overheads)
Total variable production cost per unit = -54,000 / 18,000 = -3 (negative value due to fixed production overheads)
Budgeted profit using marginal costing = (Sales - Total variable production cost per unit * Units sold) - Fixed sales overheads
Given:
Sales = 15,000 units
Fixed sales overheads = R72,000
Total variable production cost per unit = -3
Budgeted profit using marginal costing = (15,000 - (-3) * 15,000) - 72,000
= (15,000 + 45,000) - 72,000
= 60,000 - 72,000
= -12,000
Therefore, the budgeted profit using marginal costing would be -R12,000.
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