Eliminating forex risk is not possible using futures and forwards because international money markets do not recognize the risk insurance allocation from foreign banks is False.
What does forex mean?The foreign exchange market, sometimes referred to as the forex market or the FX market, is an international exchange where national currencies can be traded. Due to the global nature of trade, business, and finance, FX markets are frequently the biggest and most liquid asset markets on the planet. Exchange rate pairs are used to compare currencies.
What is the process?Speculating on foreign exchange rates in order to gain financial gain is known as forex trading. Since currencies are traded in pairs, when a trader exchanges one currency for another, they are making a prediction about whether one currency will appreciate or depreciate in value relative to the other.
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David recently received an inheritance, and he is planning to invest the inheritance in one of four stock portfolios. Which of these portfolios would you expect to have the highest risk?
a.
A portfolio with an average annual rate of return of 10%.
b.
A portfolio with an average annual rate of return of 8%.
c.
A portfolio with an average annual rate of return of 5%.
d.
A portfolio with an average annual rate of return of 14%.
David recently received an inheritance, and he is planning to invest the inheritance in one of four stock portfolios. The highest risk is expected to be in the portfolio with an average annual rate of return of 14%.
A portfolio with an average annual rate of return of 14%.More than 200.The portfolio with an average annual rate of return of 14% would have the highest risk. It should be kept in mind that portfolios that offer the highest potential returns may also pose the greatest risk of significant loss.
Portfolio risk is related to both the average return and the volatility of the return of the assets. The greater the standard deviation of return is, the greater the portfolio risk, and vice versa.
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Which of the following can help to improve self-esteem?
Looking to others for affirmation
Making a list of all your friends
Remembering past mistakes
Setting attainable goals
Answer:
Setting attainable goals
Remembering past mistakes
Explanation:
Improving self-esteem involves various strategies and setting attainable goals is a powerful approach. The correct option is D.
This goals which make individual can experience a sense of accomplishment, boosting their self-confidence. Breaking down larger objectives into smaller steps ensures a steady progress, providing motivation and a positive self-perception.
The seeking affirmation from others can also positively impact self-esteem as receiving encouragement and support fosters feelings of worth and validation.
Cultivating a support network of friends can offer emotional reinforcement, enhancing one's self-worth through meaningful connections.
Therefore, the correct option is D.
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How do changes in spending set of a chain of events that impact real GDP?
Changes in spending drives aggregate demand and contributes to some real GDP growth.
The chain of events from changes in spending circle the economy, households purchase things from businesses, businesses pay their employees and suppliers, employees and suppliers purchase goods from other businesses, these businesses pay their employees and suppliers, and so on. In this sense, the initial shift in aggregate expenditures is really spent more than once.
Hence, the real GDP grows from changes in spending.
GDP of a nation?The sum of all value added produced inside an economy is measured by the GDP. Value added is defined as the value of produced products and services less the value of the commodities and services required to produce them, or what is known as intermediate consumption.
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Which one of the following is an optional step in the accounting cycle of a business enterprise?
Prepare a trial balance
Prepare a worksheet
Post to the ledger accounts
Analyze business transactions
The optional step in the accounting cycle of a business enterprise is to prepare a worksheet. Option b is answer.
The accounting cycle is a series of steps that businesses follow to record, analyze, and report financial information. The steps include analyzing business transactions, journalizing, posting to ledger accounts, preparing a trial balance, making adjusting entries, preparing financial statements, and closing the books. While all of these steps are important in the accounting cycle, preparing a worksheet is an optional step.
A worksheet is a tool used to summarize data, make adjustments, and prepare financial statements. It helps in organizing and reviewing financial information before finalizing the financial statements. While some businesses choose to use a worksheet, it is not a mandatory step in the accounting cycle and may vary depending on the business's specific needs and preferences.
Option b is answer.
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Which of the following statements is TRUE regarding Americans' other-oriented values? A strong value is placed on immediate family and children in American society. A strong value is placed on conformity and individual differences are suppressed and condemned A strong emphasis on collectivism is one of the defining characteristics of American society. A strong value is placed on extended family in American society. Older people and aging are valued more than children and youthfulness in American society.
In American society, immediate family and children hold a significant value. This reflects the importance given to the bonds within the nuclear family unit. Americans prioritize the well-being, support, and happiness of their immediate family members, including parents, spouses, and children. The notion of familial responsibility and care is deeply ingrained in American culture. The statement that is TRUE regarding Americans' other-oriented values is: A strong value is placed on immediate family and children in American society.
1. A strong value is placed on immediate family and children in American society: This statement is true. Americans highly value the well-being and happiness of their immediate family members, including parents, spouses, and children. The bonds within the nuclear family unit are considered essential.
2. A strong value is placed on conformity and individual differences are suppressed and condemned: This statement is false. While conformity exists to some extent in any society, American culture generally emphasizes individualism and celebrates diversity. Individual differences are often respected and encouraged.
3. A strong emphasis on collectivism is one of the defining characteristics of American society: This statement is false. American society is more known for its emphasis on individualism rather than collectivism. Individual rights, personal freedoms, and self-reliance are valued.
4. A strong value is placed on extended family in American society: This statement is false. While extended family connections can be significant for some individuals, the immediate family holds a stronger value in American society.
5. Older people and aging are valued more than children and youthfulness in American society: This statement is false. American society tends to value youthfulness and places importance on the energy and potential of the younger generation. However, this does not imply that older people are not respected or valued.
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there are three assets/portfolio: the optimal risky portfolio, an individual asset inside the frontier, and another portfolio on the efficient frontier. which asset can you say is strictly dominated?
The individual asset inside the frontier is strictly dominated.
What is an asset?Everything a person, business, or nation owns that has a monetary value is referred to as an asset. An asset is an economic resource that is expected to provide benefits to the holder. An asset can be both tangible and intangible, including financial, physical, intellectual property, and real estate.
The individual asset inside the frontier is strictly dominated because it offers lower returns and higher risk when compared to the optimal risky portfolio and another portfolio on the efficient frontier. Therefore, an individual asset inside the frontier is less preferred by investors, and it is not optimal to hold it in the portfolio.
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peavey enterprises purchased a depreciable asset for $32,000 on april 1, year 1. the asset will be depreciated using the straight-line method over its four-year useful life. assuming the asset's salvage value is $4,000, peavey enterprises should recognize depreciation expense in year 2 in the amount of: multiple choice $5,833.33 $26,833.33 $8,000.00 $7,000.00 $28,000.00
Peavey enterprises should recognize depreciation expense in year 2 in the amount of $7,000. The Option D is correct.
What is a straight-line method depreciation?The straight line basis refers to the method of calculating depreciation and amortization, the process of expensing an asset over a longer period of time than when it was purchased. It is gotten by dividing the difference between an asset's cost and its expected salvage value by the number of years it is expected to be used.
Depreciation expense (year 2):
= Cost - Salvage value /Useful life
= ($32,000 − $4,000) / 4
= $28,000 / 4
= $7,000.
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Perform online research and find a house you would like to own. Calculate the cost of utilities, services, maintenance, and insurance to buy the home.
(Answers may vary.)
I found an apartment in Chicago that I would like to rent. The monthly rent is $900, but there are other fees for me to consider as a renter. Utilities (electric, water, cable, internet access, etc.) cost $300 a month. Building services, including parking and access to the gym, cost $50 a month. Maintenance fees for the building are $25 a month. Renter’s insurance is $12. The cost of living independently in this Chicago apartment is $1,287 a month.
Explanation: edmentum sample answer
What is one financial opportunity you could enjoy if you didn’t have to worry about making a monthly student loan payment?.
A financial opportunity that one could enjoy if one doesn't have to worry about making a monthly student loan payment is investing the money.
What is a loan?It should be noted that a loan simply means the money that's given to another party that will be repaid in the future with interest.
In this case, the financial opportunity that one could enjoy if one doesn't have to worry about making a monthly student loan payment is investing the money.
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Suppose the newsvendor model describes a firm’s operations decision. Is it possible to have positive stockout probability and positive expected leftover inventory? choose the best answer.
positive projected residual inventory and positive stockout probability Yes, they both represent expectations for a wide range of potential outcomes, none of which will be positive for both.
To determine the remaining inventory, deduct the value of the goods sold from the total stock. In either a perpetual inventory system or a periodic inventory system, the amount attributed to sales revenue represents the value of the products sold.
If your account shows a negative balance (overage), you have a credit balance, and you will receive a refund.
The projected profit maximization is the model's default goal in the newsvendor scenario. The likelihood of achieving a predetermined and fixed target profit level is another objective that has been researched in the literature. It is known as the "satisficing"—or "aspiration-level"—objective.
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you can blank/what your tax liability through proper financial planning
Answer:
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A grandmother sets up an account to make regular payments to her granddaughter on her birthday. The grandmother deposits $20,000 into the account on her grandaughter's 18th birthday. The account earns 2.3% p.a. compounded annually. She wants a total of 13 reg- ular annual payments to be made out of the account and into her granddaughter's account beginning now. (a) What is the value of the regular payment? Give your answer rounded to the nearest cent. (b) If the first payment is instead made on her granddaughter's 21st birthday, then what is the value of the regular payment? Give your answer rounded to the nearest cent. (c) How many years should the payments be deferred to achieve a regular payment of $2000 per year? Round your answer up to nearest whole year.
(a) The value of the regular payment is $1,769.45 if the first payment is made on her granddaughter's 18th birthday.
(b) The value of the regular payment is $1,969.67 if the first payment is made on her granddaughter's 21st birthday.
Given, Amount deposited in the account on her granddaughter's 18th birthday = $20,000Interest rate = 2.3% compounded annually Regular payments = 13We have to find the value of the regular payment.
a) The present value of the 13 payments is $20,000 (initial deposit). Using the present value formula, we can calculate the regular payment:
$20,000 = P(1 - (1 + 0.023)^-13 / 0.023)P = $1,769.45
Therefore, the value of the regular payment is $1,769.45 if the first payment is made on her granddaughter's 18th birthday.
b) If the first payment is made on her granddaughter's 21st birthday, then the present value of the 12 payments is:
$20,000(1 + 0.023)^3 = $22,530.03
Using the present value formula, we can calculate the regular payment:
$22,530.03 = P(1 - (1 + 0.023)^-12 / 0.023)P = $1,969.67
Therefore, the value of the regular payment is $1,969.67 if the first payment is made on her granddaughter's 21st birthday.
c) To achieve a regular payment of $2,000 per year, we need to find the number of years for which the payments should be deferred. Using the present value formula, we get:
$20,000 = P(1 + 0.023)^n(1 - (1 + 0.023)^-13 / 0.023)
Where P = $2,000 and n is the number of years for which the payments should be deferred.
Solving for n, we get:
n = 8.83 years therefore, the payments should be deferred for 9 years (rounded up to the nearest whole year) to achieve a regular payment of $2,000 per year.
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Analyse why Emirates would want to be more environmentally friendly
On July 1, Robles Metal Products had a beginning inventory of $505,700. During the quarter, goods costing $290,900 were manufactured. The inventory at the end of September was $485,300. During the quarter, Robles' net sales were $759,200. What was the cost of goods sold for the quarter? What was Robles's gross profit for the quarter?
Answer:
Instructions are below.
Explanation:
Giving the following information:
beginning inventory= $505,700
Cost of goods manufactured= $290,900
Ending inventory= $485,300
Net sales= $759,200.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 505,700 + 290,900 - 485,300
COGS= $311,300
Now, we can determine the gross profit:
Gross profit= net sales - COGS
Gross profit= 759,200 - 311,300
Gross profit= 447,900
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Which of the following are included in a firm's capital structure?
1. Equity
2. Current assets
3. Long-term debt
4. Net sales
The correct answer is: Equity and long-term debt are included in a firm's capital structure. A firm's capital structure refers to the combination of different sources of financing used to fund its operations and investments.
Equity represents ownership in the company and is a form of financing provided by the shareholders. It includes common stock, preferred stock, and retained earnings. Current assets, such as cash, accounts receivable, and inventory, are not directly part of a firm's capital structure. They are short-term assets that contribute to the firm's liquidity but do not represent long-term financing. Long-term debt refers to borrowed funds that have a maturity period of more than one year. It includes bonds, loans, and other forms of debt issued by the company. Net sales, on the other hand, are not components of a firm's capital structure. In summary, a firm's capital structure primarily consists of equity and long-term debt, representing the ownership and debt financing aspects of the company's financial structure.
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True or False. Business performance management (BPM) is a management action to optimize organizational or business processes.
The given statement, "Business performance management (BPM) is a management action to optimize organizational or business processes" is True because BPM refers to a set of management processes that involve analyzing and improving organizational or business processes in order to optimize performance and achieve strategic goals.
Business performance management (BPM) is a set of management processes, methodologies, and technologies used to measure, monitor, and manage an organization's performance.
It includes a variety of activities aimed at optimizing organizational or business processes, such as defining strategic goals, designing and implementing performance metrics, analyzing performance data, and taking corrective actions to improve organizational performance.It involves aligning an organization's goals and objectives with its business processes and operations and continuously measuring and monitoring performance to ensure that the organization is achieving its goals effectively and efficiently.Therefore, BPM aims to optimize organizational or business processes, it is not a single management action, but rather a comprehensive framework for managing and improving organizational performance.
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PLEASE HELLPP!!!!’Hurrryyyy
Answer:
I thinkMARKETING MANAGEMENT
HOPE IT HELPEDWhat is an analysis of environmental impacts of products from the design stage through end-of-life?
Life cycle assessment is an analysis of environmental impacts of products from the design stage through end-of-life.
Life cycle assessment (LCA), also referred to as environmental LCA, is a systematic, standardized technique for quantifying the capacity environmental effects of a product or technique that arise from uncooked substances extraction to stop lifestyles.
Lifestyles-cycle evaluation (LCA) is a procedure of comparing the outcomes that a product has on the surroundings over the complete length of its lifestyle thereby increasing aid-use efficiency and lowering liabilities.
Existence cycle assessment or LCA is a technique for assessing environmental effects associated with all the stages of the existence cycle of an industrial product, manner, or service.
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A person has $50,000 in taxable income for a year and pays a 10 percent income tax rate, equal to $5,000. Which action would reduce the amount the person paid in taxes to $1,000?
A.
Receiving a $4,000 tax deduction
B.
Receiving a $4,000 tax credit
C.
Receiving a $49,000 tax deduction
D.
Receiving a $49,000 tax credit
Taxable income is the term used to describe the basis of an income tax system and the correct option in the given situation is (B) receiving a $4,000 tax credit.
What is taxable income?The base of an income tax system is referred to as taxable income.
In other words, the amount of revenue that was subject to taxation.
In general, it comprises all or a portion of the items of income and is lessened by costs and other deductions.
Depending on the nation or system, different amounts are included as income, costs, and other deductions.
Many systems stipulate that some expenses cannot be deducted when calculating taxable income and that certain types of income are not taxable (often referred to as non-assessable income).
So, in the given situation where:
$50,000 is the taxable income
10% is the income tax rate which is $5000.
The amount paid in taxes would be $1000.
Then, the action required would be: Receiving a $4,000 tax credit
Therefore, taxable income is the term used to describe the basis of an income tax system and the correct option in the given situation is (B) receiving a $4,000 tax credit.
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Does the United States have a crime "problem" compared to other advanced and industrialized nations? Why or why not?
Why are the definitions of crime and criminal behavior critically important to political entities? Explain.
Assessing whether the United States has a crime "problem" compared to other advanced and industrialized nations is a complex matter that requires careful analysis and consideration of various factors. It is essential to recognize that crime rates and their comparison can be influenced by numerous socio-economic, cultural, and demographic factors.
Here are some points to consider:
Crime Rates: When evaluating crime levels, it is crucial to examine various crime indicators, such as violent crime rates, property crime rates, or specific types of offenses. Comparative analysis should consider the specific types of crimes and the frequency at which they occur.
Data and Reporting: Comparing crime rates across nations can be challenging due to differences in reporting practices, data collection methodologies, and legal definitions. Variations in crime reporting and recording practices can affect the accuracy and comparability of crime statistics.
Socio-economic Factors: Crime rates are influenced by socio-economic factors such as poverty, income inequality, unemployment rates, educational attainment, and social welfare systems. These factors can vary among countries and have an impact on crime levels.
Cultural and Demographic Differences: Cultural and demographic factors, including population density, diversity, social norms, and attitudes towards crime, can also affect crime rates. These factors can differ significantly among nations, leading to variations in crime levels.
Regarding the definitions of crime and criminal behavior, they are critically important to political entities for several reasons:
Legal Framework: Definitions of crime form the foundation of a country's legal system. They define what actions are considered unlawful and provide guidelines for law enforcement, the judiciary, and the criminal justice system to identify, prosecute, and punish offenders.
Consistency and Fairness: Clear and precise definitions of crime ensure consistency and fairness in the application of laws. It helps prevent arbitrary or discriminatory enforcement and ensures equal treatment under the law.
Public Safety and Order: Defining criminal behavior helps protect public safety and maintain social order. By identifying and categorizing certain behaviors as crimes, governments can establish rules and regulations that help deter individuals from engaging in harmful actions and protect citizens from harm.
Resource Allocation: Accurate definitions of crime assist in resource allocation for law enforcement, judicial processes, and correctional systems. It enables governments to focus their efforts and resources on combating specific types of criminal behavior based on their severity and impact on society.
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Macroeconomics differs from microeconomics in that.
there is a book about it if you read it it will tell you evrything
Question 1
All of the below are examples of noteworthy news that could generate positive media mentions, EXCEPT
Hiring a new employee
A partnership with a local nonprofit that you donate to
Growth of your business into new markets or product lines
A new product or service rollout
Answer:
A new product or service rollout
Explanation:
While a new product or service rollout can be important for a business, it is not necessarily noteworthy news that would generate positive media mentions. Positive media mentions typically come from news that is unique, impactful, or of significant interest to the public, such as a partnership with a local nonprofit or growth of a business into new markets or product lines. Hiring a new employee is also noteworthy news, as it can demonstrate growth and success for a business.
a company uses its company-wide cost of capital to evaluate new capital investments. what is the implication of this policy when the company has multiple operating divisions, each having unique risk attributes and capital costs?
A company uses its company-wide cost of capital to evaluate new capital investments, the implication of this policy when the company has multiple operating divisions, each having unique risk attributes and capital costs may lead to incorrect decisions
A company-wide cost of capital may either overestimate or underestimate a division's cost of capital. In such situations, a company should estimate the division's cost of capital separately to make accurate investment decisions. This approach requires an understanding of the risk-return profile of each division to determine the required return on investment. The division's risk profile must be assessed using a risk analysis, and its cost of capital must be calculated using the division's particular risk-adjusted WACC (Weighted Average Cost of Capital).
The division's cost of capital must be used to analyze and evaluate the projects. If the company is unwilling or unable to calculate the division's cost of capital, an alternative approach is to adjust the cost of capital for each division. However, the adjustment must be based on the estimated level of risk of the division and the overall risk of the company. Finally, the company should use an appropriate cost of capital for each investment opportunity rather than a company-wide cost of capital. So therefore when a company has multiple operating divisions with varying risk attributes and capital costs, using a company-wide cost of capital to assess new capital investments may lead to incorrect decisions.
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Issuing a pre-approval letter means that borrowers have completed the loan application and provided their debt, total income, and savings information, and the _______ has verified this information.
Answer: underwriter
Explanation:
The loan underwriter is responsible for verifying the information provided by a borrower. They will then use this information to assess the risk that the lender is going to incur if they lend money to the borrower.
When this is done, a pre-approval letter is issued which shows the amount that the lender is willing to lend to the borrower.
posting a notice of unfair practices in the workplace, issuing a cease and desist order, providing back pay for lost wages, reinstating dismissed workers, and issuing an order to bargain with the union are all examples of:
The union are all examples of employees have freedom to self-organize, form, join, or aid labor unions, as well as the right to collectively bargain through their own representatives.
What are labor unions?Since the National Labor Relations Act was passed in 1935, labor unions in the US have existed as organizations that represent employees in a variety of industries. The majority of their current work is representing their members in disputes with management over alleged violations of contract terms as well as collective bargaining for their membership's pay, benefits, and working conditions. At the state and federal levels, larger trade unions frequently take part in electioneering and lobbying efforts. The AFL-CIO, founded in 1955, and the Change to Win Federation, which broke away from the AFL-CIO in 2005, are the two bigger umbrella organizations with which the majority of unions in the United States are affiliated. On behalf of employees in the US and Canada, both push for laws and policies.
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A chain saw requires 2 hours of assembly and a wood chipper 6 hours. A maximum of 24 hours of assembly time is available. The profit is $150 on a chain saw and $240 on a chipper. How many of each should be assembled for maximum profit? To attain the maximum profit, assemble....... chain saws and ............wood chippers.
Answer:
To attain the maximum profit, assemble 9 chain saws and 1 wood chipper.
Step-by-Step Explanation:
To find the number of chain saws and wood chippers that should be assembled for maximum profit, we can set up a linear programming problem.
Let's assume x represents the number of chain saws to be assembled, and y represents the number of wood chippers to be assembled.
We have the following constraints:
1) Assembly time constraint: 2x + 6y ≤ 24 (maximum of 24 hours of assembly time available)
2) Non-negativity constraint: x ≥ 0, y ≥ 0 (we cannot have negative quantities)
We want to maximize the profit, which is given by the objective function:
Profit = 150x + 240y
To solve this linear programming problem, we can use graphical or algebraic methods. Here, we will use algebraic methods.
First, let's graph the feasible region determined by the constraints:
The assembly time constraint can be rewritten as:
2x + 6y ≤ 24
x + 3y ≤ 12
y ≤ (12 - x)/3
Next, we plot the boundary lines and shade the feasible region:
Feasible region:
x ≥ 0 (non-negativity constraint)
y ≥ 0 (non-negativity constraint)
y ≤ (12 - x)/3 (assembly time constraint)
Based on the graph, we can see that the feasible region is a triangular region bounded by the x-axis, y-axis, and the line y = (12 - x)/3.
To find the vertices of this feasible region, we can solve the equations:
x = 0
y = 0
y = (12 - x)/3
Solving these equations, we find the vertices:
(0, 0)
(0, 4)
(6, 0)
(9, 1)
Now, we evaluate the objective function (Profit = 150x + 240y) at each vertex to determine the maximum profit:
At (0, 0): Profit = 150(0) + 240(0) = 0
At (0, 4): Profit = 150(0) + 240(4) = 960
At (6, 0): Profit = 150(6) + 240(0) = 900
At (9, 1): Profit = 150(9) + 240(1) = 1,710
The maximum profit is attained at (9, 1), which means assembling 9 chain saws and 1 wood chipper will result in the maximum profit.
To attain the maximum profit, assemble 9 chain saws and 1 wood chipper.
Please answer B. only thank you
Suppose Cigna, a PPO payer, is responsible for revenues of $8,000,000 per year. The Cigna contract is up for renegotiation in July of 2022, and St. Elizabeth desires a 3% increase to net revenue.
Assuming all else remains constant and Cigna rate increases produce the 3% increase it penciled into the rate schedule, how much revenue will Cigna provide the system annually if it achieves its 3% increase goal? 8,240,000
3% is the increase to net revenue 3% of 8,000,000 is 240,000 8,000,000 + 240,000 = 8,240,000
b. At the negotiating table, Cigna explains that the way it can grant such an increase for the coming year (effective July of 2023) is through its quality program. There are three metrics that will be analyzed in July of 2023 for the preceding 365-day period: readmission rates, hospital-acquired infections, and patient satisfaction. If a retrospective look right before the July of 2023 effective date shows that St. Elizabeth has achieved the target for readmission rates and patient satisfaction but not for hospital-acquired infection: a. Assuming all measures are weighted equally, what is the percentage increase to rates for July of 2023?
b. If a retrospective look right before the July of 2023 effective date shows that St. Elizabeth has achieved the target for readmission rates and patient satisfaction but not for hospital-acquired infection:
Given that a retrospective look right before the July of 2023 effective date shows that St. Elizabeth has achieved the target for readmission rates and patient satisfaction but not for hospital-acquired infection. Therefore, the quality metrics of St. Elizabeth are determined to be:MetricScoreReadmission Rates94%Hospital-acquired infections88%Patient Satisfaction90%The overall quality metric score is given by the sum of the three metrics divided by three.OQS= (94% + 88% + 90%) / 3OQS= 272 / 3OQS= 90.67%The percentage increase to rates for July of 2023 is 1.68%.Formula for calculating percentage increase to rates for July of 2023
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Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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You have $110,000 to invest. You choose to put $160,000 into the market by borrowing $50,000.
a. If the risk-free interest rate is 4% and the market expected return is 11% what is the expected return of your investment?
b. If the market volatility is 10%, what is the volatility of your investment?
The expected return of investment is 9.68% and the volatility of investment is 7.6%.
a. Expected return of investment:
The expected return of investment can be calculated using the formula:
Expected return = Risk-free rate + Beta * (Market return – Risk-free rate)
Here, Beta = (Amount invested in the market / Total amount invested)
Beta = (160,000 / 210,000)
Beta = 0.76
Expected return = 4% + 0.76 * (11% – 4%)
Expected return = 9.68%
Therefore, the expected return of investment is 9.68%.
b. Volatility of investment:
The volatility of investment can be calculated using the formula:
Volatility of investment = Beta * Market volatility
Here, Beta = 0.76
Market volatility = 10%
Volatility of investment = 0.76 * 10%
Volatility of investment = 7.6%
Therefore, the volatility of investment is 7.6%.
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