There are no groups to choose from, however, it should be inferred that within a country the entity in charge of discussing changes in the economy is the government of that country.
The central banks are in charge of determining the monetary policy of the country, since they are in charge of guaranteeing economic and financial stability.
What is economics?It is a type of social science which is responsible for studying the laws that govern the distribution and consumption of goods and services available in a country.
Governments are the main entities which have power over the economies of nations, banks are those entities that control and economically finance governments.
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Target market demographics can help you determine which ____________________ would be most effective for marketing.
A) business card fonts
B) social media platforms
C) style of flyers
Target market demographics can help you determine which social media platforms would be most effective for marketing. Thus, the correct answer is option B.
A target market is a group of people who have been selected as the most likely potential purchasers for a product based on factors such as age, income, and lifestyle.
When a company creates, packages, and advertises its product, identifying the target market is an important element of the decision-making process and helpful in marketing. Everyone who can be defined as belonging to a given age group, income level, gender, occupation, and education level is included in the target market demographics.
Therefore, the appropriate answer is option B.
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develop business ideas through brainstorming
1. Identify a business or product or service idea
2. how you came by the idea (Processes)
3. the challenges your group faced in coming up with the idea
4. why you believes in the chosen business or product or service idea (Prospects)
4. what you perceive to be the main challenges in pursuing the idea
5.how you can overcome the challenges explained in point 5 should you decide to pursue the chosen business
Before we launch a business venture, we first need an idea. The better our idea is, of course, the more successful your business can be.
What is a business idea?A business idea is a concept that can be used to make money and is usually centred on a product or service that can be sold for money. An idea is the first step towards establishing a successful business. Innovative and unique are two characteristics of a promising business idea.
Developing a good business idea begins with finding one. The six steps that turns a business idea into success is as follows:
Generate some ideasSelect the best idea Research your idea Refine your ideaTest your ideaIdentify your marketTherefore, follow the above process for a creating a successful business idea.
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listen here lads i need a sonnet about food or cars or sports or video games mainly rocket league o cod
Answer:
what?
Explanation:
Answer:
rocket league, rocket league, rocket league
the game that i play every day
the game that is totally yay
that game that we all know is the way.
when i play everyday and my mom says,
"Hey get off that game
and enjoy the beautifal day
before the sun comes down
or you'll rot your brain!"
i remember myself that rocket league is
the game that i play everyday
the game that is totally yay
that game that we all know is the way
-114321
Explanation:
de end XD
Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together - in good times all prices go up together and in bad times they all fall together. In the second economy, stock returns are independent - one stock increasing in price has no effect on the prices of other stocks. Assuming you are risk-averse and you could choose one of the two economies in which to invest, which one would you choose
Answer:
As a risk averse investor I would choose the second option.
Explanation:
As a risk averse investor I would choose the second option. The second option described case whereby In an
economy whereby stocks returns are independent. And with this, risk can be diversified away as far as a large portfolio is concerned.
The contraction phase of a business cycle occurs from the
In a business cycle, the contraction stage starts when:
After the business cycle reaches its peak but before it troughs, a contraction typically happens. Most economists believe that a recession has started when a nation's real gross domestic product (GDP), the most closely watched gauge of economic activity, has decreased for two or more consecutive quarters.
When does the business cycle contract and why?the stage of the business cycle contraction
Recessions are brought on by shrinkage. 3 A contraction is caused by three different kinds of things. They include runaway inflation, an abrupt rise in interest rates, and a financial crisis.
Quizlet: What does a business cycle contraction mean?Most economists believe that a contraction happens when a nation's real GDP declines for two or more consecutive quarters. Trough. A trough in economics is a low point in a business cycle or a regional minimum.
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The contraction phase of a business cycle occurs from the peak to the trough. During this phase, economic activity slows down, and there is a decline in various economic indicators such as GDP, employment, and consumer spending.
1. Business cycles refer to the natural fluctuations in economic activity over time. They are characterized by alternating periods of expansion and contraction.2. The contraction phase, also known as a recession or a downturn, begins after the economy reaches its peak. The peak is the highest point of economic activity, where production, employment, and income levels are at their highest.3. In the contraction phase, there is a decline in economic activity, resulting in a slowdown in the overall economy. This decline is reflected in various indicators such as a decrease in Gross Domestic Product (GDP), a rise in unemployment rates, and a decrease in consumer spending.4. During this phase, businesses may experience lower profits, leading to cost-cutting measures such as layoffs and reduced investment. This, in turn, can contribute to a further decline in economic activity.5. The contraction phase is often characterized by negative business sentiment, decreased consumer confidence, and reduced demand for goods and services. These factors can lead to a downward spiral, where reduced spending by consumers and businesses further dampens economic growth.6. Policy measures such as monetary and fiscal policies are often implemented during the contraction phase to stimulate the economy. Central banks may lower interest rates to encourage borrowing and investment, while governments may increase government spending or implement tax cuts to boost consumer spending.In summary, the contraction phase of a business cycle occurs after the peak and is characterized by a decline in economic activity, including indicators such as GDP, employment, and consumer spending. It is a period of economic slowdown and is often accompanied by negative business sentiment and reduced demand.
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Which would be a good reason for a borrower to use a Peer-to-Peer (P2P) lender?
The fees may be higher than from a depository institution.
The interest rate is higher than from a depository institution.
They may not be able to borrow money from any other source.
They will build their credit score faster than using other sources.
A good reason for borrower to use a Peer-to-Peer (P2P) lender is because they may not be able to borrow money from any other source.
What Is Peer-to-Peer (P2P) Lending?The P2P lending service is also known as “social lending” or “crowd lending. This is a form of financial technology that allows people to lend or borrow money from one another without going through a bank.
Furthermore, the service enables individuals to obtain loans directly from other individuals while cutting out the financial institution as the middleman. Now, the websites that facilitate P2P lending have greatly increased its adoption as an alternative method of financing.
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Write a two-paragraph summary of this exercise that you could use to demonstrate your knowledge of the role of social media in commerce in a future job interview.
Answer:
you are awesome to mention
is the money you receive from work that you do and from
money that you invest.
Yes and now that you have money that you invested with your time you get to chose where it gose to.
Answer:
Money received for work is/are _____.
taxes
wages
mean salary
expenses
i think its wages
Sally goes out to lunch with Mike and Fred. Each person orders the
$9 lunch special. Sally agrees to pay the bill. How much will she have to pay ?
Answer: 27
Explanation: if there are 3 people ordering the same lunch and the lunch is 9 dollars. That’s 9x3 which is $27 and the amount of money sally will have to pay.
Customer experience size is not good enough
If the customer experience is not good enough, then there would be complaints and dissatisfaction.
Customer ExperienceThis has to do with the general feelings which a customer who has had an encounter with a product or service has after using them.
With this in mind, we can see that if the customer experience is bad, then that means that there would be negative feedback.
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Swarovski is associated with what product?
Answer:
Swarovski is associated with Crystal Jewelry.
Answer:
lol 69 but its Crystal Jewelry
Explanation:
Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insufficient savings of people in retirement and, as a result, he decides he wants to start now. He saves $500 per month for 15 years and earns 7% by investing in the stock market* through an index fund.
1. How much of the total did Isaiah contribute himself?
2. How much money did Isaiah make through compounded returns in this investment account?
Answer:
1255
Explanation:
gh\\667
Consider a firm redesigning its logistics network. What are the advantages of having a small number of centrally located warehouses? What are the advantages of having a larger number of warehouses closer to the end customers?
Small centrally located warehouses offer cost efficiency and simplified inventory management, while larger warehouses closer to customers provide faster delivery, better customer service, and cost savings in shipping.
Having a small number of centrally located warehouses offers several advantages in a firm's logistics network:
Cost Efficiency: Centralized warehouses can lead to cost savings in terms of inventory management, transportation, and operational overheads. With fewer warehouses, the firm can benefit from economies of scale in procurement, storage, and distribution.
Simplified Inventory Management: Managing inventory becomes more streamlined when there are fewer warehouses. It allows for better control and visibility over stock levels, reducing the risk of stockouts or overstocking.
Faster Transit Times: With centrally located warehouses, products can be shipped more quickly to various regions since they are closer to major transportation hubs. This reduces lead times and improves overall customer satisfaction.
Improved Coordination: Centralized warehouses facilitate better coordination and synchronization of supply chain activities. It becomes easier to manage inbound and outbound logistics, optimize transportation routes, and consolidate shipments.
On the other hand, having a larger number of warehouses closer to end customers provides the following advantages:
Faster Delivery: Proximity to end customers enables faster order fulfillment and delivery. Products can reach customers more quickly, reducing transit times and improving responsiveness.
Enhanced Customer Service: Local warehouses allow for better customization and personalization of service. They can cater to specific regional preferences, offer faster response times to customer queries, and handle returns or exchanges more efficiently.
Lower Shipping Costs: By locating warehouses closer to customers, transportation costs can be reduced as products travel shorter distances. This can lead to cost savings in shipping expenses.
Flexibility and Redundancy: Having multiple warehouses distributed geographically provides redundancy and flexibility in the supply chain. It mitigates the risk of disruptions, such as natural disasters or transportation issues, as the firm can rely on alternative warehouse locations.
In summary, a small number of centrally located warehouses offer cost efficiency and streamlined inventory management, while a larger number of warehouses closer to end customers provide faster delivery, improved customer service, lower shipping costs, and increased flexibility.
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Using the post-enrollment method, when will a new member be disenrolled from their C-SNP if a qualifying condition cannot be verified?
A new member is disenrolled from their C-SNP if a qualifying state cannot be demonstrated by the end of the first month enrolled.
What is C-SNP?
Chronic Condition Special Needs (C-SNP) programs exist as a kind of Medicare Advantage (MA) plan created to satisfy the unique conditions of people with one or more additional chronic conditions, including diabetes, and end-stage renal disease (ESRD), lung disease, or heart disease.
With this information, we can deduce that C-SNPs are SNPs that limit enrollment to particular requirements for individuals with specific severe or injury chronic conditions.
These exist unique requirements plans which exist designed to bring care to people with one or more additional chronic conditions.
A new member will nevertheless be disenrolled if the qualifying condition for the schedule can't be confirmed in the first month.
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(02.03 MC)
When shopping for a savings account you should look for one that offers
O annual fees
O loyal customer fees
O simple interest
O compounding interest
First National Bank Assets Liabilities and Net Worth US Treasury Bonds $450,000 Net Worth $500,000 Reserves (Cash) $175,000 Checkable Deposits $250,000 Loans $125,000 Second National Bank Assets Liabilities and Net Worth US Treasury Bonds $100,000 Net Worth $250,000 Reserves (Cash) $250,000 Checkable Deposits $100,000 Third National Bank Assets Liabilities and Net Worth US Treasury Bonds $900,000 Net Worth $1,000,000 Reserves (Cash) $350,000 Checkable Deposits $500,000 Loans $250,000
The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), then $_____________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable Deposit accounts in new loans.
$900,000 is added to the system's overall potential to create loans.
Determine the loan amount.We must first determine the surplus reserves of the Second National Bank following the depositing of $400,000 in order to assess the subsequent change to the system's overall capacity to create loans.
With $100,000 in checkable deposits and a 25% minimum reserve ratio, Second National Bank is required to hold reserves equivalent to 25% of its checkable deposits. As a result, the reserves it needs are:
Checkable Accounts x Required Reserve Ratio = Needed Reserves
Reserves Needed = 100,000 divided by 0.25
Reserves Needed = $25,000
Yet Second Federal Bank already has $250,000 in reserves, which is more than enough. As a result, its surplus reserves are:
Reserves minus Required Reserves equals Surplus Reserves.
Reserves in Excess = 25,000 - 250 000
Reserves in Excess = $225,000
We must now determine the largest possible loan that Third National Bank could make using its extra reserves. By dividing the extra assets by the required reserve ratio, the maximum possible loan is determined: Excess Reserve / Required Reserves determines the maximum possible loan.
Loan Amount Maximum = $225,000 divided by 0.25
The maximum loan amount is $900,000.
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The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.
Using this information, please compare the investment in the 5% 15-year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).
The annual investment returns are as follows:
Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%
Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)
Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%
Year 13 29.60% Year 14 11.39% Year 15 (0.73%)
The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.
Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis.
Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.
What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?
1. The value of the stock account after Year 2 is $155,401.626.
2. The value of the stock account after Year 8 is $96,110.0674.
3. The value of the stock account after Year 11 is $96,110.0674.
4. The annual dividend income of the stock exceeds the annual interest income of the bond at the end of Year 15.
Bond interest rate: 5%
Stock dividend yield: 3.7% (10% less than S&P 500 average yield)
Stock dividend growth rate: 3% (50% of S&P 500 dividend growth rate)
We'll assume an initial investment of $100,000.
Year 1:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $100,000 + ($100,000 * 0.2337) = $123,370
1. Year 2:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $123,370 + ($123,370 * 0.2638) = $155,401.626
2. Year 8:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $155,401.626 + ($155,401.626 * (-0.3849)) = $96,110.0674
3. Year 11:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $96,110.0674 + ($96,110.0674 * 0) = $96,110.0674
4. At the end of Year 15, the dividend income of the stock exceeds the interest income of the bond.
Stock dividend income: $100,000 * 0.037 = $3,700
Bond interest income: $100,000 * 0.05 = $5,000
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Solutions for lack of accurate and timely information?
Solutions for information overload?
Information overload is a rising issue for organisations all over the world, and improving employee experience is a top concern for the majority of them. The problem is that, despite the fact that information overload is a well-known issue, it appears that most firms have yet to find effective methods to address it, which is rather concerning.
Information overload in the workplace refers to the large volume of irrelevant information that circulates among employees. In today's job, it is difficult to prevent information overload. Most businesses, from start-ups to huge corporations, are experiencing information overload.
It is also critical to deliver correct and timely information. People and organizations will make poor judgements in the absence of accurate, reliable, and timely information.
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Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
Current liabilities $ 197 Income before interest and taxes $ 116
10% Bonds, long-term 370 Interest expense 37
Total liabilities 567 Income before tax 79
Shareholders' equity Income tax 22
Capital stock 210 Net income $ 57
Retained earnings 291
Total shareholders'
equity 501
Total liabilities and
equity $1,068
HHF's times interest earned ratio is (Round your answer to two decimal places.):__________.
a) 10.00.
b) 3.14.
c) 1.54.
d) 2.14.
Answer:
HHF's times interest earned ratio is 3.14. The right answer is b
Explanation:
In order to calculate the times interest earned ratio we would have to use the following formula:
Times interest earned ratio=Earnings before interest and taxes/Interest expenses
According to the given data we have the following:
Earnings before interest and taxes= $116
Interest expenses =$37
Therefore, Times interest earned ratio=$116/$37
Times interest earned ratio=3.14
HHF's times interest earned ratio is 3.14
In 2023, Indiana Jones made the following charitable contributions:
Donee Property AGI limit Cost FMV
City Hospital Cash 60% $ 20,000 $ 20,000
Salvation Army Clothes 50% $ 4,000 $ 1,500
State University IBM stock 30% $ 15,000 $ 25,000
Determine the maximum amount of charitable deduction for Indiana Jones’s contribution in 2023, if his AGI is $100,000 this year. You may assume that the stock has been owned for 10 years.
The maximum amount of charitable deduction for Indiana Jones's contributions in 2023, with an AGI of $100,000, would be $46,500.
To determine the maximum amount of charitable deduction for Indiana Jones's contributions in 2023, we need to calculate the deductible amount for each contribution based on the AGI limits and the type of property donated.
1. City Hospital Cash: Since it is a cash donation, the deductible amount is limited to 60% of Indiana Jones's AGI. Therefore, the deductible amount for this contribution would be $20,000.
2. Salvation Army Clothes: As this is a donation of clothes, the deductible amount is limited to 50% of Indiana Jones's AGI. However, the deductible amount cannot exceed the lesser of the property's cost or fair market value (FMV). In this case, the deductible amount would be $1,500, which is the FMV of the donated clothes.
3. State University IBM Stock: Since it is a donation of appreciated stock that has been owned for more than a year, the deductible amount is limited to 30% of Indiana Jones's AGI. However, the deductible amount cannot exceed the lesser of the property's cost or FMV. In this case, the deductible amount would be $25,000, which is the FMV of the donated IBM stock.
To calculate the maximum charitable deduction, we need to sum up the deductible amounts of all the contributions:
$20,000 (City Hospital Cash) + $1,500 (Salvation Army Clothes) + $25,000 (State University IBM Stock) = $46,500
Therefore, the maximum amount of charitable deduction for Indiana Jones's contributions in 2023, with an AGI of $100,000, would be $46,500.
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QUESTION 82
Lucent Technologies is considering a project that has the following cash flow and WACC data.
a) Determine the project's NPV.
b) Decide whether IRR or MIRR is appropriate for this problem. Explain which of these you chose and determine the value.
c) Given your solutions for a & b, advise management to accept or reject the project by making the appropriate comparisons.
7.45%
WACC:
Year
Cash flows
0
-$32,600 $15,000 $17,000
$13,000
-$4,000
a) the NPV of the project is $3,573.36. b) the MIRR of the project is 5.94%.
c) the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project.
a) To calculate the NPV of the project, we need to discount the future cash flows to their present value using the weighted average cost of capital (WACC) of 7.45%.
Year 0 cash flow: -$32,600
Year 1 cash flow: $\(15,000 / (1 + 0.0745)^1\) = $13,947.74
Year 2 cash flow: $\(17,000 / (1 + 0.0745)^2\) = $14,377.64
Year 3 cash flow: $\(13,000 / (1 + 0.0745)^3\) = $10,748.23
Year 4 cash flow: -$\(4,000 / (1 + 0.0745)^4\) = -$2,900.25
NPV = -$32,600 + $13,947.74 + $14,377.64 + $10,748.23 - $2,900.25 = $3,573.36
Therefore, the NPV of the project is $3,573.36.
b) The IRR (Internal Rate of Return) and MIRR (Modified Internal Rate of Return) are both methods used to evaluate the attractiveness of an investment opportunity. The IRR is the discount rate that makes the NPV of the project equal to zero, while the MIRR is the discount rate that equates the present value of cash inflows to the future value of cash outflows.
In this case, since the project has non-conventional cash flows (negative initial cash flow followed by positive cash flows and then a negative cash flow), the IRR approach may lead to multiple IRR values, making it unreliable. Therefore, MIRR is more appropriate for this problem.
To calculate MIRR, we need to find the future value of the initial outflow, and the present value of all future inflows, then find the discount rate that equates these values.
Future value of the initial outflow: -$ = -$41,670.92
Present value of future inflows: $15,000 + $17,000 + $13,000 - $4,000 = $41,000
MIRR = [(41,000 / 41,670.92)^(1/4)] - 1 = 5.94%
Therefore, the MIRR of the project is 5.94%.
c) Based on the positive NPV of $3,573.36 and the MIRR of 5.94%, it is advisable for the management to accept the project. The positive NPV indicates that the project's inflows exceed the outflows, generating value for the company, while the MIRR of 5.94% is higher than the cost of capital of 7.45%, indicating that the project is expected to provide returns that are higher than the required rate of return.
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Cost and service trade off
1.Explain cost and service trade off in distribution.
What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions
Answer:
Option B; Creating face-to-face interviews
Explanation:
Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.
Which statement best describes one way the farm will be affected by using
this new fertilizer?
OA. The farm's marginal cost for fertilizer will decrease.
B. The farm's opportunity cost for using fertilizer will increase.
OC. The farm's marginal cost for fertilizer will increase.
OD. The farm's opportunity cost for using fertilizer will decrease.
One way the farm will be affected by using this new fertilizer is that the farm's opportunity cost for using fertilizer will decrease.
What is opportunity cost?Opportunity cost is what an individual give up to acquire another commodity that is taken in exchange.
If the new fertilizer is better than the former one the opportunity cost for losing the old product will decrease.
Therefore, One way the farm will be affected by using this new fertilizer is that the farm's opportunity cost for using fertilizer will decrease.
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Hey Brainly! I need help with my personal financial planning homework. My teacher said for us to answer the question: once you make three long-term financial goal, how do these long-term financial goals match with the lifestyle you plan to live? I'm unsure how our financial goals can match with the lifestyle we plan to live. Can someone explain, please?
Note that when you make financial long-term goals, you have to create a type of lifestyle that matches with these goals. For example, you may need to cut down on some kind of expenses such as entertainment while you focus on spending on acquiring high-income skills that help you to attain your long-term financial goals.
What are example of high-income skills that can help you attain your financial goals?Some examples of high-income skills are:
User experience.Web development.Project management.Account management.Content creation and management.High-income talents are those that generate a lot of money. And these abilities necessitate the use of mental energy to tackle high-income situations. Similarly, career-relevant talents are those that are no longer useful towards the conclusion of one's career.
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You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation
Answer:
Explanation:
What 22
Please answer.........................
The topic, thesis, introduction, body, conclusion, and references are the first appropriate financial essay components. After finishing your first draft, start working on your second one.
An assignment in money terms is what?Assignment is the formal agreement-based transfer of some or all of the ownership rights and financial liabilities attached to a given asset, property, contract, etc. to a different party. A payee might provide a bank the authority to collect payments on a note, for instance.The topic, thesis, introduction, body, conclusion, and references are the first appropriate financial essay components. After finishing your first draft, start working on your second one. Include all the necessary details for a good paper in this draft. Fix grammatical and spelling mistakes, and improve the flow of the sentences in this draft.To learn more about financial essay components refer to:
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When dressing for success you should NOT _____.
a.
dress neatly
b.
wear bright, flashy clothes
c.
wear minimal jewelry
d.
look clean
Answer:
B-Wear bright flashy clothes
Explanation:
bright flashy clothes can give off the wrong impression to people that may have been previously up to working with you, it can change the minds of people in an instant, but if you look clean, dress neatly, and wear minimal jewelry people will tend to pick you over someone who dresses innaproetly even if you are less qualified. Therefore option b is the answer because when dressing for success you should not wear bright flashy clothes.
Fill in the blank with the correct response.
____ are STEM professionals who collect, analyze, and interpret data.
Answer:
to bad this isn't multiple choice
Explanation:
but it would only make sense if it were scientists. sorry if I'm wrong
From the collected data, the statistician makes use of statistical concepts to sift through large data sets, develop data interpretation and deduce relevant information from the data and present meaningful conclusion to the relevant bodies in fields such as education, manufacturing, marketing, government and healthcare.
From the collected data, the statistician makes use of statistical concepts to sift through large data sets, develop data interpretation and deduce relevant information from the data and present meaningful conclusion to the relevant bodies in fields such as education, manufacturing, marketing, government and healthcare.Biologists research, collect data and measurements, perform tests and experiments, and analyze and interpret their findings. These science professionals are required to have a bachelor's degree in biology for an entry-level position.
QUESTION TWO HEEKS Associates Co. Ltd is considering investing in one of two proposed short-term portfolios of four short-term financial investments. The correlation between the returns of the individual investments is believed to be negligible in both options proposed. The market return is estimated to be 15%, and the risk-free rate 5%. Portfolio 1 Investment A B C D Portfolio 2 Investment A B C D Amounts invested (TZS) 10,000,000 40,000,000 30,000,000 20,000,000 Amounts invested (TZS) 20,000,000 40,000,000 20,000,000 20,000,000 Expected Total return risk 20% 8 22% 24% 26% Expected return 18% 20% 22% 16% 10 11 9 Total risk 7 9 12 13 Beta 0.7 1.2 1.3 1.4 Beta 0.8 1.1 1.2 1.4 Required: a) Calculate the risk and return of the two portfolios using the principles of both portfolio theory and the CAPM. b) Which portfolio appears to be more efficient?
Portfolio 1: Expected Return 1: 19.6% , Total Risk (σ1): 5.5%
CAPM Expected Return 1: 51%, CAPM Total Risk (σ1): 49.5
Portfolio 2: Expected Return 2: 19.2%, Total Risk (σ2): 4.7%
CAPM Expected Return (E(R2)): 50%, CAPM Total Risk (σ2): 48.1
a) Portfolio Risk and Return Calculation:
Using Portfolio Theory:
For Portfolio 1: Expected Return 1 = (Weight A * Return A) + (Weight B * Return B) + (Weight C * Return C) + (Weight D * Return D) Expected Return (E(R1)) = (0.1 * 18%) + (0.4 * 20%) + (0.3 * 22%) + (0.2 * 16%)
= 1.8% + 8% + 6.6% + 3.2%
Expected Return 1 = 19.6%
Total Risk (σ1) = √[(Weight A^2 * Risk A^2) + (Weight B^2 * Risk B^2) + (Weight C^2 * Risk C^2) + (Weight D^2 * Risk D^2)] Total Risk (σ1) = √[(0.1^2 * 7^2) + (0.4^2 * 9^2) + (0.3^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.49 + 12.96 + 10.08 + 6.76] Total Risk (σ1) = √30.29
Total Risk (σ1) = 5.5%
For Portfolio 2: Expected Return 2 = (0.2 * 18%) + (0.4 * 20%) + (0.2 * 22%) + (0.2 * 16%)
= 3.6% + 8% + 4.4% + 3.2%
Expected Return 2 = 19.2%
Total Risk (σ2) = √[(0.2^2 * 7^2) + (0.4^2 * 9^2) + (0.2^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.98 + 12.96 + 2.88 + 5.32] = √22.14
Total Risk (σ2) = 4.7%
Using CAPM:
For Portfolio 1: Expected Return 1 = Risk-Free Rate + (Beta A * Market Risk Premium) + (Beta B * Market Risk Premium) + (Beta C * Market Risk Premium) + (Beta D * Market Risk Premium) Expected Return (E(R1))
= 5% + (0.7 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.3 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.7 * 10%) + (1.2 * 10%) + (1.3 * 10%) + (1.4 * 10%)
= 5% + 7% + 12% + 13% + 14%
Expected Return 1 = 51%
Total Risk (σ1) = Beta-Weighted Standard Deviation = (Beta A * Risk A) + (Beta B * Risk B) + (Beta C * Risk C) + (Beta D * Risk D)
= (0.7 * 7) + (1.2 * 9) + (1.3 * 12) + (1.4 * 13)
= 4.9 + 10.8 + 15.6 + 18.2
Total Risk (σ1) = 49.5
For Portfolio 2: Expected Return 2 = 5% + (0.8 * (15% - 5%)) + (1.1 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.8 * 10%) + (1.1 * 10%) + (1.2 * 10%) + (1.4 * 10%)
= 5% + 8% + 11% + 12% + 14%
Expected Return 2 = 50%
Total Risk (σ2) = (0.8 * 7) + (1.1 * 9) + (1.2 * 12) + (1.4 * 13)
= 5.6 + 9.9 + 14.4 + 18.2
Total Risk (σ2) = 48.1
Based on these metrics, Portfolio 2 appears to be more efficient since it has a slightly lower total risk while still offering a high expected return.
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