an investor buys five shares of xyz at the beginning of 2020, buys another two shares at the beginning of 2021, sells one share at the beginning of 2022, and sells all six remaining shares at the beginning of 2023. a. what are the arithmetic and geometric average time-weighted rates of return for the investor? b. prepare a chart of cash flows for the four dates corresponding to the turns of the year for january 1, 2020, to january 1, 2023. c. what is the dollar-weighted rate of return?

Answers

Answer 1

a. Arithmetic average time-weighted rate of return: As we know that the formula of the arithmetic average time-weighted rate of return is given as follows:

Arithmetic Average Time-Weighted Rate of Return= [tex]\frac{\sum R}{n}[/tex]

Where,

R = returns for each period

n = number of periods (in this case  3).

By using the formula of the arithmetic average time-weighted rate of return we can calculate the arithmetic average time-weighted rate of return as follows:

For year 2020:

R1 = [tex]\frac{(5 \times P_1- (5\times P_0))}{(5\times P_0)}\\\\\\[/tex]

[tex]R1=\frac{(5 \times P_1 -5}{5} \\\\R1 = P_1 - 1[/tex]

For year 2021:

[tex]R2 =\frac{ [(5 \times P_1 + 2 \times P_2 - (5 \times P_0))}{(5 \times P_0)]^{(1/2)} - 1}\\\\\\\\[/tex]

[tex]R2=\frac{(5 \times P_1 + 2 \times P_2-5)}{5^{(1/2) - 1 }}[/tex]

[tex]R2 = (5 \times P_1+ 2 \times P_2- 5)^{(1/2) - 1}[/tex]

For year 2022:

[tex]R3 =\frac{ [(4 \times P_2 - (5 \times P_0))}{(5 \times P_0)]^{(1/2) - 1}}[/tex]

[tex]R3 =\frac {(4 \times P_2 - 5)}{5^{(1/2) - 1}}[/tex]

[tex]R3 = (4 \times P_2- 5)^{(1/2) - 1}[/tex]

By adding all the calculated returns and dividing them by 3 we get the arithmetic average time-weighted rate of return.

(i) The arithmetic average time-weighted rate of return is ($P_2$)^(1/3) − 1

(ii) The geometric average time-weighted rate of return is ($P_2$)^(1/3) − 1b.

For the final sale,

[tex]R = (FV4 - BV4)/BV4= 6P_2 / P_2 - 1R = 5[/tex]

By adding all the calculated returns we get the dollar-weighted rate of return.

(iii) The dollar-weighted rate of return is [tex]11/P_0[/tex].

To know more about rate of return refer here:

https://brainly.com/question/31079100#

#SPJ11


Related Questions

if a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget. therefore, the better the firm's investment opportunities, the lower its payout ratio should be. group of answer choices true false

Answers

If a firm adopts a residual distribution policy. The better the firm's investment opportunities, the lower its payout ratio should be. The statement is true.

What is a residual distribution policy?

A residual distribution policy is one in which the firm first invests in profitable projects that can generate high rates of return.

Once the company has completed these profitable projects, it allocates the rest of its profits to distribute among shareholders or pay dividends in proportion to the total amount of profits earned.

As a result, when a company has a significant amount of profitable projects, it should distribute fewer profits to shareholders or pay fewer dividends, so that the earnings can be used for future profitable projects.

Therefore, a company's payout ratio should be lower if it has better investment opportunities.

To know about residual distribution refer here:

https://brainly.com/question/27376566#

#SPJ11

which of the following statements about pension plans are true? (select all that apply.) check all that apply employees covered by defined contribution pension plans choose where funds are invested. employees covered by defined contribution pension plans choose where funds are invested. the retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement. the retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement. employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits. employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits. defined contribution pension plans promise fixed retirement benefits defined by a designated formula.

Answers

The following statements about pension plans are true:

Employees covered by defined contribution pension plans choose where funds are invested.The retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement.Employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits.

WHAT'S PENSION PLAN

A pension plan is an investment scheme established by an employer to provide a retirement benefit to their employees. This retirement benefit is usually in the form of a pension or annuity payout to the employee upon retirement.

There are two types of pension plans available:

Defined Benefit Pension Plan and Defined Contribution Pension Plan.

The following statements about pension plans are true:

Employees covered by defined contribution pension plans choose where funds are invested.

In a defined contribution pension plan, the employee contributes a certain percentage of their salary, and the employer often matches that contribution. The funds are then invested in various financial instruments, such as stocks, bonds, or mutual funds, depending on the employee's preference.

The retirement pay of employees covered by defined benefit pension plans depends on the size of the fund at retirement.

A defined benefit pension plan is a retirement plan in which the employer promises to pay a specific benefit to the employee upon retirement. The benefit is typically based on the employee's years of service and final salary.

Employers who offer defined benefit pension plans are responsible for ensuring that sufficient funds are available to provide promised benefits.

In a defined benefit plan, the employer is responsible for investing the funds and ensuring that there are enough funds available to pay the promised benefits. If the funds run out, the employer is responsible for covering the shortfall.

Learn more about pension plan at

https://brainly.com/question/30019347

#SPJ11

comprehensive income is the total change in shareholders' equity for a reporting period from transactions with owners and nonowners. group startstrue or false

Answers

The given statement "Comprehensive income is the total change in shareholders' equity for a reporting period from transactions with owners and nonowners group starts" is True.

What is comprehensive income?

Comprehensive income (CI) is a company's net income that includes gains and losses that are not part of its usual revenues and expenses. Unrealized gains and losses in available-for-sale securities are one example.

Comprehensive income is the sum of net income and all other gains and losses that have not been recognized in the company's revenue and expense accounts. Therefore, comprehensive income provides a more comprehensive picture of a company's overall profitability.

What is meant by transactions with owners and nonowners?

A transaction that affects a company's shareholders' equity is a transaction with owners. Nonowner transactions are those that don't involve shareholders or reduce their ownership stake. Unrealized gains and losses on cash flow hedges and the impact of foreign currency translation adjustments on non-U.S. subsidiaries are examples of these nonowner transactions.

Therefore, comprehensive income can be used to improve shareholders' equity for a reporting period. Comprehensive income is the total change in shareholders' equity for a reporting period from transactions with owners and nonowners. Group starts are True.

To know more about comprehensive income click here:

https://brainly.com/question/14814430

#SPJ11

if wages rise by 12 percent at the same time prices rise by 3 percent, then the increase in real wages is equal to

Answers

If wages rise by 12 percent at the same time prices rise by 3 percent, then the increase in real wages is equal to  9 percent.

Real income, also known as real wage when referring to an individual's income, is the amount of money that an individual or entity makes after taking inflation into account.

The average hourly wage rate expressed in dollars over a specified reference base period is known as the real wage rate. It demonstrates how many goods and services one hour of work can buy. Real wage rate is calculated as (current-year nominal wage rate / current-year CPI) x 100%.

Real wages are decreased by inflation through a decline in the capital stock and a change in relative prices, respectively. The two effects combine to cause a decline in real wages that is greater than the corresponding decline in per-capita GDP. During times of high inflation, this mechanism could contribute to rising poverty.

Learn more about real wages at:

brainly.com/question/14895331

#SPJ4

in order to sell more of its product, a monopolist must:a. merely produce more units.b. advertise more.c. produce the profit-maximizing rate of production.d. lower price.

Answers

In order to sell more of its product, a monopolist must lower the price.

What is a Monopolist?

A monopolist is a single seller or a single entity that dominates the supply of a given commodity or service. A monopoly company has the power to influence prices and is often said to be a price-maker. Monopolies frequently arise as a result of barriers to entry, such as high capital costs or legal restrictions.In order to sell more of its product, a monopolist must:Lowering the price is the most effective strategy for a monopolist to sell more of its product. The monopolist lowers the price of their commodity or service to increase the quantity demanded. Consumers may purchase more items due to the lower cost, which will result in higher sales and revenue.The demand curve for a monopolist is downward sloping since they are price makers. This implies that a monopolist can raise the price of the item and reduce the quantity demanded or lower the price and increase the quantity demanded. Since a monopolist has a lot of control over the market and can set the price, lowering the price will help the monopolist to sell more of its product.Consequently, in order to sell more of its product, a monopolist must lower the price.

for more questions on monopolist

https://brainly.com/question/13113415

#SPJ11

what is the percentage change in the price of each bond if its yield to maturity falls from 6% to 5%?bondcoupon ratematurityannual couponold pricenew pricepercentage changeranka0.00$0.00 $417.27 $481.02 15.280.00$0.00 $558.39 $613.91 9.94<4.00$40.00 $805.76 $896.20 11.23-8.00$80.00 $1,147.20 $1,231.65 7.36jnnual coupon

Answers

Given that the yield to maturity of the bond has decreased from 6% to 5%. We need to calculate the percentage change in the price of each bond.

Bond Coupon rate Maturity Annual coupon Old price New price Percentage change

RankA 0.00% $0.00 $417.27 $481.02 15.28%0.00% $0.00 $558.39 $613.91 9.94%<4.00% $40.00 $805.76 $896.20 11.23%-8.00% $80.00 $1,147.20 $1,231.65 7.36%

The percentage change in the price of the bond is given by the following formula:

% change in price = (new price - old price) / old price * 100

Let's calculate the percentage change in the price of the first bond: Bond A%

change in price = (new price - old price) / old price * 100= (481.02 - 417.27) / 417.27 * 100= 15.28%Therefore, the percentage change in the price of Bond A is 15.28%.

Let's calculate the percentage change in the price of the second bond: Bond B% change in price = (new price - old price) / old price * 100= (613.91 - 558.39) / 558.39 * 100= 9.94%

Therefore, the percentage change in the price of Bond B is 9.94%.

Let's calculate the percentage change in the price of the third bond: Bond C% change in price = (new price - old price) / old price * 100= (896.20 - 805.76) / 805.76 * 100= 11.23%

Therefore, the percentage change in the price of Bond C is 11.23%.

Let's calculate the percentage change in the price of the fourth bond: Bond D% change in price = (new price - old price) / old price * 100= (1,231.65 - 1,147.20) / 1,147.20 * 100= 7.36%Therefore, the percentage change in the price of Bond D is 7.36%.

Learn more about price: https://brainly.com/question/1153322

#SPJ11

item 1 an entrepreneurial startup can be successful, if three ingredients are critical. what are they?

Answers

A viable opportunity, available resources, and a qualified and motivated founding team are the three critical ingredients that are essential for the success of an entrepreneurial startup.

A viable opportunity refers to a market need or gap that the startup can fulfill with a unique and innovative product or service. The opportunity should be something that has demand in the market and is profitable for the startup to pursue.

Startups need access to resources such as capital, talent, and technology to develop and launch their product or service. This includes funding from investors or other sources, as well as access to talent and technology that can help the startup succeed.

A startup's founding team should have the necessary skills, experience, and motivation to create and grow a successful business. This includes having expertise in areas such as product development, marketing, finance, and operations, as well as the drive and passion to see the startup through the challenges of starting and growing a business.

Overall, these three critical ingredients - a viable opportunity, available resources, and a qualified and motivated founding team - are essential for the success of an entrepreneurial startup. By focusing on these key areas, startups can increase their chances of success and achieve their goals over the long term.

The complete question is

According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they?

To know more about the Entrepreneurial, here

https://brainly.com/question/29613002

#SPJ4

during planning, an auditor of a nonissuer should communicate which of the following to those charged with governance at an entity? the audit does not relieve management of its responsibilities for the financial statements. the auditor will express an opinion on the effectiveness of internal controls over compliance with laws and regulations. the auditor is responsible for preparing financial statements in conformity with the applicable financial reporting framework. all audit findings will be communicated in writing to those charged with governance.

Answers

During planning, an auditor of a nonissuer should communicate the following to those charged with governance at an entity: The correct option is that "the audit does not relieve management of its responsibilities for the financial statements."

What is an auditor?

An auditor is a person who is responsible for auditing the financial statements of an organization. An auditor has the responsibility of examining the financial statements of the company to ensure that they are free from errors and fraud. They make sure that the financial statements provide a true and fair view of the financial position of the company.

The auditor also has the responsibility of communicating the results of the audit to those charged with governance at an entity. During planning, the auditor should communicate the following to those charged with governance at an entity:

The audit does not relieve management of its responsibilities for the financial statements.The auditor will express an opinion on the effectiveness of internal controls over compliance with laws and regulations.

All audit findings will be communicated in writing to those charged with governance.

Learn more about financial statements: https://brainly.com/question/26240841

#SPJ11

which of the following is an input to the manage stakeholder engagement process? seleccione una: a. communications management plan b. negotiations c. communication d. meetings

Answers

The input to the Manage Stakeholder Engagement process is the Communications Management Plan.

What is Manage Stakeholder Engagement?

The process of effectively engaging stakeholders in project decision-making and execution to achieve project objectives is known as Manage Stakeholder Engagement. It is critical to involve stakeholders and ensure that they are satisfied with project outcomes to achieve project goals.

Selecting the input to the Manage Stakeholder Engagement process: Among the following, the input to the Manage Stakeholder Engagement process is the Communications Management Plan.

The Communications Management Plan is a document that defines the communications needs and expectations of project stakeholders. It establishes the procedures for collecting and sharing data between stakeholders as well as how to handle project information.

Therefore, it is important to establish a Communications Management Plan to ensure that all stakeholders are informed of project progress and that project objectives are met.

Communication, meetings, and negotiations are all important components of the Manage Stakeholder Engagement process. However, they are not inputs to the process. Instead, they are tools and techniques to engage stakeholders, and they play a critical role in ensuring project success.

To learn more about stakeholder, refer below:

https://brainly.com/question/30463383

#SPJ11

In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if
A-economic profit is zero.
B-price falls below average total cost.
C-price is less than average variable cost.
D-it cannot completely cover its fixed costs.

Answers

In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if the price is less than average variable cost. Option C is correct.

In a price-taker market, a firm is a price taker, meaning that it has no control over the market price of its product. In the short run, a firm's goal is to maximize profits by producing the output level where marginal revenue (MR) equals marginal cost (MC).

However, if the price is less than the firm's average variable cost (AVC), then the firm is not generating enough revenue to cover its variable costs, and it is better off shutting down production in the short run. By shutting down, the firm can minimize its losses by avoiding variable costs, which are costs that vary with the level of output, such as labor and raw materials.

If the price is greater than or equal to the firm's average variable cost, but less than average total cost, then the firm should continue to produce in the short run, even if it is making losses. This is because the firm is still covering its variable costs, and continuing to produce allows it to at least contribute something towards covering its fixed costs, which are costs that do not vary with the level of output, such as rent and salaries. Option C is correct.

To know more about the Production, here

https://brainly.com/question/24317556

#SPJ4

which of the following statements is true? when a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease. when a company changes from a traditional costing system to an activity-based costing system, the unit product costs of high-volume products typically change more than the unit product costs of low-volume products.

Answers

When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.

A traditional costing system is a method of allocating manufacturing overhead to products that is based on the volume of the allocation base (e.g., direct labor hours or machine hours) consumed by each product. To calculate the unit product cost, this method divides total manufacturing overhead by the volume of the allocation base and assigns a portion of the total manufacturing overhead to each product manufactured.

A cost accounting system that attempts to assign costs to products or services based on the resources they consume is known as an activity-based costing system. It assigns overhead expenses to products or services by recognizing the various activities that contribute to the manufacturing of goods and services. In an activity-based costing system.

When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease. In an activity-based costing system, low-volume products consume a higher portion of manufacturing overhead than in a traditional costing system, and high-volume products consume a smaller portion of manufacturing overhead than in a traditional costing system.

As a result, when a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease. Therefore, the correct statement is: When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.

For more about costing system;

https://brainly.com/question/13450769

#SPJ11

Many women in developing countries experience more economic hardships than women in developed countries. Which is the MOST likely reason for this?
Unequal status with men
Conformity with dress codes
Inability to care for male offspring
Inability to gather with other females

Answers

The MOST likely reason for women in developing countries to experience more economic hardships than women in developed countries is unequal status with men.

In many developing countries, women do not have equal access to education, job opportunities, or economic resources, and may be subject to discriminatory laws and cultural norms that limit their ability to participate fully in society. This can lead to women being concentrated in low-paying, informal jobs with little job security or benefits, and may also limit their ability to own property or access credit.

Conformity with dress codes, inability to care for male offspring, and inability to gather with other females are not likely to be major factors contributing to economic hardships for women in developing countries. While cultural norms and practices may contribute to gender inequality in some contexts, the primary barriers to economic empowerment for women in these settings are more likely to be structural and systemic, such as discrimination and lack of access to resources and opportunities.

Learn more about the economic hardships:

brainly.com/question/887494

#SPJ4

capsaicin is a compound in chili peppers that produces a burning sensation in mammalian tissues. in mammals, capsaicin binds to the trpv1 transmembrane channel. interestingly, the trpv1 channel in birds does not respond to capsaicin. what implications could this have for chili pepper plants?
a. Mammals are likely responsible for the dispersal of chili pepper seeds
b. Bids are likely responsible for the dispersal of chili pepper seeds
c. Chili pepper seeds cannot be dispersed
d. Bird will avoid eating chili pepper

Answers

option B is correct . Bids are likely responsible for the dispersal of chili pepper seeds implications could this have for chili pepper plants

Because it causes a burning sensation in mammalian tissues, the chemical capsaicin, found in chili peppers, evolved as a protective mechanism to prevent mammals from consuming them. Yet, birds do not experience the spicy effects of capsaicin because their TRPV1 transmembrane channel does not react to the substance. In light of the fact that birds can devour the fruit without being put off by the capsaicin, it is possible that they are better seed dispersers for chili pepper plants than mammals.

"Birds are probably responsible for the distribution of chili pepper seeds," is the most logical conclusion from the fact that the chili peppers are dispersed by birds.

Learn  more about “ capsaicin  “ visit here;

https://brainly.com/question/15155916

#SPJ4

your profile information needs to be up-to-date and accurate because it affects which aspect of a planner's cvent experience?

Answers

Profile information is essential for a planner's Cvent experience as it affects the level of trustworthiness and credibility of the planner's profile. It is highly recommended that planners keep their profile information up-to-date and accurate to ensure that their events are successful.

The profile information of a planner includes details about their professional background, education, experience, contact details, and previous events they have organized. These details help potential attendees, vendors, and suppliers determine whether the planner is suitable for their needs.

A planner's profile also includes their ratings and reviews from previous attendees and suppliers, which can significantly affect their reputation and success in the industry. An incomplete or inaccurate profile may result in a low rating or negative reviews, which can negatively impact a planner's success on the Cvent platform.

Additionally, accurate profile information helps to create a level of trust between the planner and attendees or vendors, which is crucial for the success of any event. Therefore, keeping one's profile information accurate, up-to-date, and complete is crucial for a planner's success on the Cvent platform.

To learn more about credibility  here:

https://brainly.com/question/24266723#

#SPJ11

the market where corporations and governments typically issue bonds denominated in dollars and sell them to investors located outside the united states is known as the market. a) international equity market b) foreign bond market c) eurobond market d)all of the above

Answers

The correct answer is C) Eurobond Market. Eurobonds are bonds denominated in currencies other than the issuer's domestic currency.

They are usually issued in US dollars and sold to investors located outside the United States. Eurobonds are generally issued by governments and corporations, and are considered an important part of the global capital markets. Eurobonds have some advantages for both the issuer and investors. For the issuer, eurobonds offer diversification and can reduce the risk of default, as investors from many different countries are exposed to the same bond. For investors, eurobonds offer attractive yields and the potential for higher returns than those found in their domestic bond markets.

Eurobonds can also be used as a tool for risk management, allowing investors to diversify their portfolio and reduce their exposure to currency fluctuations. The Eurobond market is heavily regulated by the International Capital Market Association, and is subject to strict rules and standards. Overall, the Eurobond market is an important source of capital for governments and corporations, and provides attractive investment opportunities for global investors.5

For more such question on currency

https://brainly.com/question/667556

#SPJ11

market directives that have yet to be executed is called____

Answers

In the following question, in the missing blank, The market directives that have yet to be executed are called "unfilled orders."

What are market directives? A market directive refers to a guideline or a rule that is issued by a regulatory body that oversees the activities of the securities and financial markets. Market directives are put in place to regulate the activities of securities markets and prevent fraudulent activities.

In other words, market directives are rules and regulations that are designed to ensure the smooth and proper functioning of the securities market. They are issued by regulatory authorities and are legally binding. Their objective is to promote transparency and fairness in the securities market.

What are unfilled orders? Unfilled orders refer to the buy or sell orders that have been placed but are yet to be executed. An unfilled order is an indication that there is demand for a particular security, but the transaction has not yet been completed. Unfilled orders are an essential part of the securities market and serve as an indicator of the level of demand or supply for a particular security.

Therefore, the market directives that have yet to be executed are called unfilled orders. An unfilled order is an indication of the level of demand or supply for a particular security.

For more such questions on market directives

https://brainly.com/question/28942512

#SPJ11


What is the agreements that the government made with companies instead of asking for bids?

Answers

The agreements that the government makes with companies instead of asking for bids is called as the sole-source contracts.

A sole-source contract is a type of government contract in which a particular company is chosen to provide goods or services without a competitive bidding process.

The Sole-source contracts may be used in situations where there is only one company capable of providing the required goods or services, or when a competitive bidding process would be impractical or not in the best interest of the government.

Learn more about Agreement here

https://brainly.com/question/23530938

#SPJ4

financial intermediaries such as banks typically have assets that are riskier than their liabilities.True or False

Answers

True, financial intermediaries such as banks typically have assets that are riskier than their liabilities.

What are financial intermediaries? Financial intermediaries, also known as financial institutions, are institutions that accept funds from savers and then lend them to investors or borrowers. Financial intermediaries are companies that act as a link between savers and borrowers by accepting funds from savers and then investing them in various types of assets, such as bonds and stocks, or lending them to borrowers.Banks, credit unions, and insurance firms are among the most well-known financial intermediaries. Financial intermediaries are able to transfer funds more efficiently than the savers themselves because they pool and redistribute funds in ways that savers cannot.Assets and liabilities of financial intermediaries:Assets are tangible and intangible goods that a business owns, as well as rights to collect payments from others. Examples of assets include cash, investments, land, buildings, and inventory. When it comes to financial intermediaries, the assets they keep are riskier than the liabilities. They have to keep the assets at risk to get a better return on them, so that their liabilities can be paid on time. Liabilities are sums owed to another person or organization as a result of past transactions. Examples include wages payable, taxes payable, and accounts payable.

Read more about financial here:https://brainly.com/question/30535617

#SPJ11

Wong took a test assessing his editing skills as part of the interview process for an executive assistant position. Depending on Wong’s score, the recruiter can assume how successful be will be in the job, based on ________ validity.A. contentB. predictiveC. concurrentD. subjectiveE. logical

Answers

Wong took a test assessing his editing skills as part of the interview process for an executive assistant position. Depending on Wong’s score, the recruiter can assume how successful be will be in the job, based on B. predictive validity.

Predictive validity refers to the degree to which the results of an examination forecast a person's future work efficiency. The concept can be used to describe the degree to which a test score is relevant to a person's work efficiency as it is observed in the future. It implies that the score from the test can be utilized to forecast how effectively the applicant will do in a specific job in the future.

The degree of predictability depends on how similar the skills required for the task are to the skills tested on the examination. Therefore, option B is correct based on predictive validity, the recruiter can assume how successful Wong will be in the job, depending on his score. Options A, C, D, and E are incorrect because predictive validity has been mentioned in the query.

Know more about Executive assistant position here:

https://brainly.com/question/29454691

#SPJ11

a stock price is $50. the value of a european call option with a strike price of $47.50 and maturity of 100 days is $4.375. the 100-day default-free discount rate is 5 percent, assuming a 360-day year. a) for a put option with a strike price of $47.50 and maturity of 100 days, you are quoted a price of $2.125. is this consistent with the absence of arbitrage? please justify your answer. b) if your answer to a) is that arbitrage is possible, how would you construct an arbitrage portfolio to take advantage of the situation?

Answers

A. No, this is not consistent with the absence of arbitrage.

The price of the put option does not account for the 100-day default-free discount rate of 5%, which should be taken into account when evaluating the arbitrage opportunity.

The put option should reflect the 100-day default-free discount rate of 5%. If this is not taken into account, then the arbitrage opportunity exists because the put option would be priced too low compared to the call option.

To take advantage of this situation, one could construct an arbitrage portfolio by buying the put option and selling the call option, while taking the discount rate into account.

This would create a risk-free profit due to the mispricing of the put option.

To know more about discount rate click on below link:

https://brainly.com/question/13660799#

#SPJ11

Samantha gets her employees to do their work by offering something valuable in exchange Jiro often uses threats to get his staff to achieve desired results Lina worked her way up the ladder and was eventually made President of the international Division. This established her formal position of authority in the organization Everyone voted for Julian to lead the team because of his extensive knowledge of the processes they would be using to complete their upcoming project There's something charismatic about Zoe that makes others want to work with her and follow her Leadership Consultation Coalition tactics 6 Inging tactics Rational persuasion To influence your boss to give you are, you prepared a presentation that showed your productivity and output over the past five years compared to your coworkers The ASPCA influences consumers to donate by showing heart wrenching commercials that feature animals in sheer In order to make a decision at Willect your entire team, you discuss the options with several of your team members and see the input and advice Before asking you to take on a particularly amount and thankless m ent your boss spends a few minutes posing of your recent successes at work Your coworker wants you to cover his site is week, so he reminds you that the two of you are close and t his is what friends do for one another o dy week. Your bosses you that you we willing to work Thanksgiving week without any daysoft she will guarantee that you dont have to work during the new m oy with the policy Aher trying unsuccessfully for months to get your supervisor to change the company vacation policy, you decide to drum up support from all of your coworkers who are your colleagues may rate you poorly on your next performance You don't want to teach an extra class at your university next semester, but your boss subtly reminds you that if you don't do You didn't earn as much bonus money as you think you should have, so you speak to your boss and remind him about the company polcy regarding how much money you should have come based on your performance

Answers

In the following question, among the conditions given, In order to influence your boss to give you a raise, you should prepare a comprehensive and detailed presentation that showcases your productivity and output over the past five years compared to your coworkers.

Be sure to ensure that your presentation is professional and well-organized. Additionally, be sure to highlight any successes or improvements you have made in your role, as well as any new skills or capabilities that you have acquired. This can help demonstrate the value that you bring to the company and can be a persuasive factor when asking for a raise. Finally, be sure to remind your boss of any company policies regarding compensation or bonuses that may apply to your situation.

For more such questions on raise

https://brainly.com/question/30732423

#SPJ11

sparkling bev offers canned sparkling water in grape, watermelon, and lime. after the success of the three flavors, the company introduces orange and strawberry. which product development strategy has sparkling bev implemented?

Answers

Sparkling Beverage has put into practice a product line expansion product development strategy.

What makes sparkling water so special?

Water that has been compressed with carbon dioxide gas to produce effervescence, or bubbles, is referred to as carbonated water, sparkling water, bubbly water, or fizzy water under many headings.

Why does sparkling water vary from other beverages?

Where the carbonation comes from makes the biggest distinction between seltzer and sparkling water. If the carbonation is synthetic, the beverage is probably seltzer or club soda and is subject to the same regulations as soda. Water is considered sparkling if bubbles are present naturally and are present at the source.

To know more about  product development visit:-

https://brainly.com/question/16529144

#SPJ1

you deposit $1,000 in your bank account. a. if the bank pays 4% simple interest, how much will you accumulate in your account after 10 years? b. how much will you accumulate if the bank pays compound interest? (do not round intermediate calculations. round your answer to 2 decimal places.)

Answers

A. If the bank pays 4% simple interest, you will accumulate $1,400 in your account after 10 years. This can be calculated by multiplying the initial amount ($1,000) by the rate (4%) and the time period (10 years) using the formula A = P(1+rt), where A is the total amount, P is the principal amount, r is the rate and t is the time. So, A = $1,000(1+ 0.04*10) = $1,000(1.4) = $1,400.

B. If the bank pays compound interest, you will accumulate $1,628.89 in your account after 10 years. This can be calculated by using the formula A = P(1+r/n)nt, where A is the total amount, P is the principal amount, r is the rate, n is the number of times the interest is compounded per year, and t is the time. So, A = $1,000(1 + 0.04/1)¹ˣ¹⁰ = $1,000(1.04)¹⁰ = $1,628.89.

Learn more about interest: https://brainly.com/question/25793394

#SPJ11

panther company had a quality-assurance warranty liability of $348,000 at the beginning of 2024 and $302,000 at the end of 2024. warranty expense is based on 2% of sales, which were $54 million for the year. what amount of warranty costs were paid during 2024? multiple choice $1,126,000 $0 $1,080,000 $1,034,000

Answers

The correct option is (a) $1,126,000.

The given problem is related to the warranty cost of Panther Company. The company had a quality-assurance warranty liability of $348,000 at the beginning of 2024 and $302,000 at the end of 2024.

Warranty expense is based on 2% of sales, which were $54 million for the year.

We have to find out the amount of warranty costs that were paid during 2024.

Warranty expense is the expense incurred by a manufacturer or service provider that is related to the warranty provided for its products. The warranty cost is treated as a provision in the balance sheet of the company. It is a liability and considered to be an estimate that may or may not be incurred in the future.

The warranty expense of Panther Company can be calculated as:

Warranty expense = Sales × Warranty percentage

Warranty percentage = 2% = 0.02Sales = $54 million

Warranty expense = $54 million × 0.02 = $1,080,000

The calculation shows that the warranty expense for Panther Company was $1,080,000. To calculate the amount of warranty costs that were paid during 2024, we need to use the following formula:

Warranty cost paid = Warranty expense + Opening balance of warranty liability - Closing balance of warranty liability

Warranty expense = $1,080,000

Opening balance of warranty liability = $348,000

Closing balance of warranty liability = $302,000

Warranty cost paid = $1,080,000 + $348,000 - $302,000 = $1,126,000

To know more about warranty expense here

https://brainly.com/question/29751314

#SPJ11

thomson corporation owns 70 percent of the outstanding stock of stayer, incorporated. on january 1, 2019, thomson acquired a building with a 10-year life for $320,000. thomson depreciated the building on the straight-line basis assuming no salvage value. on january 1, 2021, thomson sold this building to stayer for $315,200. at that time, the building had a remaining life of eight years but still no expected salvage value. in preparing financial statements for 2021, how does this transfer affect the computation of consolidated net income?

Answers

The transfer of the building from Thomson to Stayer will have a major effect on the computation of consolidated net income by the loss occurred on sale.

Thomson will recognize a loss on the sale of the building equal to the difference between the selling price and the carrying value of the building on the date of sale. The carrying value of the building on the date of sale will be the net book value (NBV) of the asset, which is its original cost of $320,000 less accumulated depreciation. Since the building was depreciated on a straight-line basis with no salvage value, its accumulated depreciation at the date of sale will be $64,000 ($320,000/10 years x 2 years). Therefore, the NBV of the building on the date of sale will be $256,000 ($320,000 - $64,000). The loss on the sale will be $5,800 ($256,000 - $315,200). Hence, creates a loss on sale.

Learn more about depreciation here:
https://brainly.com/question/15085226

#SPJ1

What are the keys to employee engagement?

Answers

The keys to consider to improve employee engagement are as follows- Maintain clear, transparent, two-way communication, Recognize and value team members.

Provide professional development opportunities.

Ensure an appropriate balance between personal and professional life.

Make work meaningful. Use human-centered leadership.

Measure work engagement on a regular basis using dedicated tools.

Employee Engagement is a fundamental concept/definition for understanding and describing the nature of an organization's relationship with its employees, both qualitatively and quantitatively. A “dedicated employee” is defined as someone who is fully committed and committed to their work and therefore takes positive actions to improve the reputation and interests of the organization. Engaged employees have a positive attitude towards the organization and its values.

To learn more about employee engagement, here:

https://brainly.com/question/15071683

#SPJ4

amex's performance is steadily declining, and the firm needs to turn things around quickly. which of the following is the firm's best option for achieving its short-term goals? a. invent a new product or service that fills an unmet need b. determine ways to innovate on its existing processes, products, and services c. imitate appropriate innovations exhibited by competitors d. expand into a new international market

Answers

The best option for Amex for achieving its short-term goals is to invent a new product or service that fills an unmet need.

According to question, Amex must soon improve its performance, which is progressively deteriorating. This is the best way to do it.

Hence , the answer is option A.

What exactly is a product?

Any good or service you provide to satisfy a customer's need or desire is a product. They might be real or virtual. Durable commodities (such as vehicles, furniture, and computers) and nondurable items are examples of physical things (like food and beverages).

The name of the product?

Products are frequently referred to as merchandise in the retail industry, and they are purchased as raw materials in the manufacturing industry before being sold as finished items. A sort of product that is also recognised as a service.

To know more about Product visit:

https://brainly.com/question/22852400

#SPJ1

the apple ipod is not selling very well in a market where portable media players are selling very poorly, having been overtaken by smartphones. where does the ipod sit in apple's portfolio matrix?

Answers

Apple's iPod in the portfolio matrix In Apple's portfolio matrix, the iPod falls under the "Dog" category, which is characterized by low market share and low market growth.

The Apple iPod is no longer popular in a market where portable media players are selling poorly and have been overtaken by smartphones. The portfolio matrix, also known as the BCG matrix or growth-share matrix, is a strategic planning tool used to evaluate a company's product portfolio. The matrix is divided into four categories: Cash CowStar Question Mark DogIn the matrix, a product is positioned based on two dimensions: market share and market growth. Market share refers to the percentage of total sales in a given market that a company controls.

Market growth refers to the rate at which the market is expanding. Based on these two dimensions, the following categorizations are made: Stars have high market share and high market growth. They are the company's primary source of revenue and profit. Cash Cows have high market share and low market growth. They provide a steady stream of revenue but have limited growth potential.

Question Marks have low market share but high market growth. They have the potential to become stars, but they require a significant investment to get there. Dogs have low market share and low market growth. They are not profitable and require a lot of resources to maintain. They are often phased out or divested.

For more about portfolio matrix:

https://brainly.com/question/28314999

#SPJ11

The four steps in the sequential process of building the brand equity pyramid are: (1) developing positive brand awareness; (2) establishing a brand's meaning in the minds of consumers; (3) eliciting the proper consumer responses to a brand's identity and meaning; and (4) ________.

Answers

The fourth step in the sequential process of building the brand equity pyramid is to create brand loyalty.

Brand loyalty is the degree to which a consumer consistently chooses a particular brand over others in a given product category. It refers to a consumer's preference for a particular brand and their willingness to continue purchasing products or services from that brand even if other options become available.

Brand loyalty can be based on various factors such as quality, price, design, customer service, and brand image. When consumers are loyal to a brand, they are more likely to recommend the brand to others and less likely to switch to a competitor's brand. Strong brand loyalty is a valuable asset for companies as it can lead to increased sales, repeat business, and brand advocacy.

Learn more about Brand loyalty: brainly.com/question/28544470

#SPJ11

According to Sage, _____ % of sneakers and other sporting goods sold in the US are imports from foreign countries 90% 50% 10%

Answers

According to Sage, 90% of sneakers and other sporting goods sold in the US are imports from foreign countries. The correct option is A.

The United States became the world's top importer of sports equipment in 2020 after importing $9 billion worth of it. Sports Equipment was the 49th most imported commodity into the United States that year. Sporting equipment is mostly imported into the United States from China, Mexico, Vietnam, and Canada. The correct option is A.

Sporting goods imports to the United States from around the world increased by almost 100% to a value of US$3.7 billion for the first three months of 2021, compared to US$1.9 billion for the same period of 2020, as a result of lockdowns caused by COVID-19 in sporting venues and gyms, as well as the rise in consumer health consciousness. The correct option is A.

Learn more about Imports here:

https://brainly.com/question/13663581

#SPJ4

Other Questions
week 3 learning how to negotiate is all about communication and how one conducts themselves around others. what leadership skills do you feel one needs to practice diversity, equity, and inclusion with an unconscious bias during the negotiation process? WILL GIVE BURLIEST.. Choose the equation that represents the line that passes through the point (6, -3) and has a slope of1-N2OOy=-x+6Oy=-x-6|_y=-x-32|_y=-x+3 in order for demand for a good to be present, what two conditions must be present? 06.11 Discussion-Based Assessment FULL ASSIGNMENTS selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because: Peirre and Marie ............. radiation in 1900. a) found b) discovered c) invented d) looker for what are the folate recommendations for non-pregnant women in their childbearing years? 6 foot tall adult casts, a shadow that is 15 feet long estimate the height of a child who cast a 10 foot shadow 1.2 Define the term 'relationships' and state THREE ways in which positive relationships cancontribute towards enhancement of positive well-being.(1+3)(Lower Or1.3 Mention THREE reasons why Grade 11s could experience positive changes withinfriendships due to their renewed focus on academics.(3x1)(Lower Ord a stockholder-approved amendment to the certificate (articles) of incorporation may indemnify directors who: group of answer choices breached their duty of loyalty. acted in bad faith. acted negligently. all of the above. a passive leader is one who only shows interest in his/her followers when needed. group starts true or false which of the following statement is correcct? one of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights HURRY PLEASE HELP!!!Which sentence uses anantonym of "lagging"?A. The laggard driver moved at a snail'space and every car passed it on the highway.B. She did her best to work quickly to keepup with the rest of the crew.C. He kept dawdling, which made him latefor work.D. The internet connection was sluggishand it took a while for the webpages to load. Use the sites to research arguments for and against the Electoral College. Then, determine the most convincing arguments for both the Electoral college and the popular national vote.WHAT IS THE AUTHORS POSITION OF THESE MAGAZINES?TIME Magazine:These 3 Common Arguments For Preserving the Electoral College Are Wrong -Real Clear Politics:Why We Need the Electoral College -PBS NewsHour:This proposal calls for popular vote to determine the winner - The sum of the ages of two brothers Kofi and Kwaku is 35. Kofi age is 2/3 of Kwaku's age. find their ages. What is the area of this composite figure? Use 3.14 for pi. Round to the nearest hundredth. Show ALL work. 2) a) Write the chemical reaction showing hydrogen carbonate polyatomic ion acting as an acid in water.b) Write the chemical reaction showing hydrogen carbonate polyatomic ion acting as a base in water.3) Acidic solutions have pHthan 7, while basic solutions have pH.Neutral solutions have pH.4) In a certain aqueous solution, the concentration of [H*] = 1.0 x 10-4 mol/L.a) Calculation the pH of this solution. Show your work.b) Is this solution acidic, neutral, or basic?5) In another solution, the concentration of (H*1 = 1.0 10 mol/L.a) Calculation the pH of this solution. Show your work.b) Is this solution acidic, neutral, or basic?c) Can a basic solution have any H* ions in it? Please help make 5 sentences in spanish. With 5 verbs that are love related. Pic included :) Drag a statement or reason to each box to complete this proof