In an oligopoly industry there are very few sellers true
A firm is producing with excess capacity when the firm does not produce at the lowest ATC true
A Cartel can be formed when the number of firms in the industry is very large false
In the price leadership model of oligopoly, the largest two firms make decisions for all the firms in the industry false
The Kinked Demand model of oligopoly explains why prices in contestable markets do not change very often false
Only a few sellers exist in an oligopoly industry, which causes a high concentration of market power among them. These businesses are able to significantly influence prices and market outcomes due to the low level of competition. When a company operates below its production efficiency, excess capacity develops, leading to unused resources and higher average total costs. This may occur as a result of market circumstances, tactical choices, or insufficient use of available technology.
Small groups of businesses frequently form cartels when they agree to limit competition and increase their combined profits. When there are fewer companies in an industry, such collusion is more likely to occur because it makes coordination easier and lowers the possibility of defection.
The price leadership model calls for a dominant firm to set the price, but it does not necessarily mandate that the two biggest firms decide what is best for the entire industry. There may still be some pricing discretion available to other businesses.
Price stability in oligopolistic markets, where firms must contend with demand curves with varying elasticities above and below the going rate, is explained by the kinked demand model. It doesn't deal with contestable markets specifically, where frequent price changes are more likely because of the low barriers to entry and exit.
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1. Describe the basic revenue cycle activities.
2. Describe four threats in the revenue cycle and identify appropriate controls for each threat.
3. Explain how validity checks, completeness tests and reasonableness tests can be implemented to ensure accuracy of customer orders.
1. The basic activities in the revenue cycle are: order entry soliciting and processing customer activities , filling customer orders and shipping merchandise invoicing customers and maintaining customer accounts.
2. The Four Threats in the Revenue Cycle :
Threat 1: Sales to customers with poor credit Controls: Having an independent credit approval function and maintaining good customer accounting can help to prevent problems.
Threat 2: Shipping errors Controls: Reconciling shipping notices with picking tickets; bar-code scanners; and data entry application controls will help to catch these errors.
Threat 3: Theft of inventory Controls: Secure the location of inventory and document transfers; release only with valid shipping orders; have good accountability for picking and shipping; and finally, periodically reconcile records with a physical count.
Threat 4: Failure to bill customers Controls: Separating shipping and billing and pre-numbering of shipping documents helps along with reconciliation of all sales documents.
3. Validity checks can be used to compare the customer and inventory information on the customer order with the information in the customer and inventory master files. A completeness test can ensure that all the necessary information is present on the customer order. A reasonableness test can compare the quantity ordered with the customer's past order history for that item.
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QUESTION 3 a) Calvin needs RM4,500 now. Find the amount that she should borrow for 200 days from a bank that charges 8.5% bank discount rate. b) Kiran received a promissory note at 6.85% simple intere
a) The amount that Calvin should borrow for 200 days from a bank that charges 8.5% bank discount rate is RM4,287.50.
b) The maturity value of the given promissory note is RM8,857.14.
a) Amount to be borrowed = Face value - bank discount
Amount to be borrowed = RM4,500 - bank discount
To calculate bank discount;
Bank discount = Face value * Bank discount rate * Time / 360
Bank discount = RM4,500 * 8.5% * 200 / 360
Bank discount = RM212.50
Amount to be borrowed = RM4,500 - RM212.50
Amount to be borrowed = RM4,287.50
Therefore, the amount that Calvin should borrow is RM4,287.50.
b)The formula to calculate maturity value is;
M = P(1 + rt)
Maturity value = Principal amount * (1 + interest rate * time)
Maturity value = P(1 + rt)
Kiran held the note for 55 days and then discounted it. After the discount, he received RM8,500. The maturity period is from 3 June 2021 to 11 September 2021 which is 100 days.
Maturity value = Proceeds / (1 - bank discount rate * time / 360)
Maturity value = RM8,500 / (1 - 7% * 55 / 360)
Maturity value = RM8,500 / 0.9583
Maturity value = RM8,857.14
Therefore, the maturity value of the note is RM8,857.14.
Note: The question is incomplete. The complete question probably is: a) Calvin needs RM4,500 now. Find the amount that she should borrow for 200 days from a bank that charges 8.5% bank discount rate. b) Kiran received a promissory note at 6.85% simple interest rate on 3 June 2021.The note will mature on 11 September 2021. After holding the note for 55 days, he discounted the note at discount rate of 7% and received proceeds of RM8.500. Find the maturity value of the note.
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Management of Sheridan, Inc., is planning to raise $1,451,250 in new equity through a private placement. If the sale price is $22.50 per share, how many shares does the company have to issue? Number of shares shares
Number of shares = Amount of new equity / Sale price per share
In this case, the amount of new equity is $1,451,250 and the sale price per share is $22.50. Plugging in these values into the formula, we can calculate the number of shares:
Number of shares = $1,451,250 / $22.50
Dividing the amount of new equity by the sale price per share will give us the number of shares needed. Performing the calculation:
Number of shares = 64,500 shares
Therefore, Sheridan, Inc. needs to issue 64,500 shares in order to raise $1,451,250 in new equity through the private placement.
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Which of the following business events or transactions is most likely a red flag of a money laundering operation? Stealing passwords Kiting checks Smoothing net income on the financial statements 0 Prepayments on a credit card
The business events or transactions are most likely a red flag of a money laundering operation smoothing net income on the financial statements. The true source or nature of finances can be concealed by people or organizations by smoothing net revenue, making it more difficult to identify illicit activity. The correct option is B.
Making funds that were obtained illegally appear genuine is known as money laundering. Smoothing net income on financial accounts refers to the manipulation of reported earnings to produce a constant and steady pattern, frequently by fraudulently inflating or deflating income to escape suspicion or inspection.
Thus, the ideal selection is option B.
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A bond issue with a face amount of $490,000 bears interest at the rate of 10%. The current market rate of interest is also 10%. These bonds will sell at a price that is: Multiple Choice The answer cannot be determined from the information provided More than $490,000 Less than $490,000 Equal to $490,000
The best option is option c that is Equal to $490,000. This is because the bond issue has a face amount of $490,000 and the interest rate is 10%, which is the same as the current market rate of interest.
This means that the bond issue is priced at par, or its face value, because investors are willing to pay the full amount for the bonds. If the market rate of interest was higher than 10%, the bonds would be priced at a discount, meaning they would sell for less than their face value. If the market rate of interest was lower than 10%, the bonds would be priced at a premium, meaning they would sell for more than their face value. However, since the market rate of interest is the same as the bond's interest rate, the bonds will sell at their face value of $490,000.
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Less than four months into 2022, the US stock markets recorded its worst monthly performance since the dramatic stock market crash in early 2020 due to a COVID-19 outbreak. In particular, S&P500 was down about 8.8% while the Nasdaq Composite fell 13.3%. Still, the April Market weakness has investors concerned about the prospect of a much deeper market crash just around the corner (Forbes Advisor, 2022)
One of your long-term clients, Mr Liam Mason, constructed a stock portfolio on 21st June 2021 and intended to sell the portfolio on 6th May 2022. His portfolio consists of any four U.S. stocks (among nine stocks listed in Exhibit 1) plus NexTier Oilfield Solutions, Inc. (NEX) stock. With the intense market volatility and his biggest concerns revolving around inflation, and geopolitical tensions exacerbated by Russia’s invasion of Ukraine, Mr Liam worried that U.S stock market would fall deeper in the near future. However, assuming he was confident that the stocks in his portfolio would outperform the market. Therefore, on 3rd February 2022, he asked you to set up a hedge against his portfolio’s market risk using CME E-Mini S&P500 index futures. He expected the hedge to be in effect at the close of trading on 3rd February 2022. The futures contract prices are presented in Exhibit 2, while the contract size of all futures is $USD50 per index point.
This task aims to investigate how index futures can be used to reduce the market risk from holding the stock portfolio. In particular, you need to propose:
a) Which futures contract your client should use (i.e. June 2022, September 2022 or December 2022 E-Mini S&P500 index futures). Justify your choice.
b) The number of futures contracts for the hedge and report the position in futures contracts to be taken, in order to reduce the beta of Mr Liam’s stock portfolio to 0.2.
The exact number of futures contracts and the position in futures contracts needed to reduce the beta to 0.2.
a) To determine which futures contract your client should use, you need to consider the expiration date that aligns with the intended selling date of Mr Liam's portfolio (6th May 2022). Since the question doesn't provide the exact expiration dates for the June, September, and December 2022 E-Mini S&P500 index futures, you would need to refer to the available information in Exhibit 2 or any other relevant data source to identify the futures contract that expires closest to 6th May 2022. The choice of the futures contract should be based on the closest expiration date to match Mr Liam's selling date.
b) To reduce the beta of Mr Liam's stock portfolio to 0.2, you need to calculate the number of futures contracts required. The beta represents the sensitivity of a stock or portfolio's returns to the overall market returns. By using index futures, you can effectively reduce the portfolio's beta by taking short positions in the futures contracts.
To calculate the number of futures contracts needed, you would need the current beta of Mr Liam's stock portfolio and the beta of the chosen futures contract. The formula to calculate the number of futures contracts is:
Number of futures contracts = (Portfolio Beta - Target Beta) / Futures Beta
Since the target beta is 0.2, you can substitute the values into the formula to calculate the number of futures contracts. However, the specific values of the portfolio beta and futures beta are not provided in the given information. You would need access to the beta values of the individual stocks in Mr Liam's portfolio and the chosen futures contract to perform the calculation accurately.
Without the specific beta values, it is not possible to determine the exact number of futures contracts and the position in futures contracts needed to reduce the beta to 0.2.
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1a) in the neo-classical model, the level of employment is determined by the level of aggregate demand.
In the neo-classical model, the level of employment is not primarily determined by the level of aggregate demand. Instead, the level of employment is primarily determined by the supply side factors, specifically the interaction of labor supply and labor demand in the labor market.
According to the neo-classical model, the level of employment is determined by the equilibrium between the quantity of labor supplied by individuals and the quantity of labor demanded by firms. Labor supply is influenced by factors such as population size, demographics, and individual preferences, while labor demand is influenced by factors such as productivity, technology, and the cost of labor.
In this model, the wage rate plays a crucial role in determining the quantity of labor supplied and demanded. As the wage rate increases, individuals may be incentivized to supply more labor, while firms may demand less labor due to higher labor costs. Conversely, a decrease in the wage rate may result in increased labor demand and reduced labor supply.
Aggregate demand, on the other hand, primarily affects the overall level of economic activity and output in the neo-classical model, rather than directly determining the level of employment. Changes in aggregate demand can lead to fluctuations in output and overall economic growth, but the labor market adjusts based on the underlying supply and demand dynamics.
It's important to note that there are alternative economic models, such as Keynesian economics, where aggregate demand plays a more prominent role in determining the level of employment. However, in the neo-classical model, the level of employment is primarily determined by the interaction of labor supply and labor demand, with aggregate demand influencing the overall economic conditions.
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What is the maximum Canada Education Savings Grant that can be received in any year at the standard rate of 20%?
a. $1,000
b. $50,000
c. $200,000
d. $7,200
The maximum Canada Education Savings Grant that can be received in any year at the standard rate of 20% is option d. $7,200.
The Canada Education Savings Grant (CESG) is a government program designed to encourage saving for a child's post-secondary education. The CESG provides a grant based on a percentage of the contributions made to a Registered Education Savings Plan (RESP).
The maximum grant amount that can be received in any year at the standard rate of 20% is $7,200. This means that if a contribution of $36,000 is made to an RESP in a given year, the CESG will provide a matching grant of 20% on that amount, which equals $7,200.
The purpose of setting a maximum grant amount is to ensure that the CESG remains targeted towards middle-income families and provides a meaningful incentive for saving. By capping the grant at $7,200, the government can allocate resources effectively and encourage families to save for their children's education while balancing the overall cost to the government.
It is important to note that there may be additional eligibility criteria and provisions for the CESG, such as income limits and carry-forward provisions, which should be considered when planning for education savings.
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Break-Even Point Hilton Inc. sells a product for $82 per unit. The variable cost is $39 per unit, while fixed costs are $660,093. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $90 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $90 per unit fill in the blank 2 units
a. Break-even point in sales units = 15,349 units b. Break-even point if the selling price were increased to $90 per unit = 12,943 units.
Break-Even Point: Hilton Inc. sells a product for $82 per unit. The variable cost is $39 per unit, while fixed costs are $660,093. To find the break-even point in sales units and the break-even point if the selling price were increased to $90 per unit, we will need to use the following formula: $82Q = $39Q + $660,093.Q = $660,093 / ($82 - $39)Q = $660,093 / $43Q = 15,349 units, which is the break-even point in sales units.
If the selling price were increased to $90 per unit, the new equation would be: $90Q = $39Q + $660,093.$51Q = $660,093Q = 12,943 units, which is the break-even point if the selling price were increased to $90 per unit.
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The state collected gasoline taxes, which in accordance with state law were dedicated solely .to the maintenance of state roads Enterprise Fund O Debt Service Fund O Special Revenue Fund O General F
The state collected gasoline taxes, which in accordance with state law were dedicated solely to the maintenance of state roads are deposited into the C. Special Revenue Fund.
Special Revenue Funds are accounted for in government accounting as a separate fund that collects and uses revenue for a specific purpose other than for the general revenue of the government. Special revenue funds are often used to account for revenue sources that have restrictions placed upon them by outside parties such as federal or state governments and are used to finance certain functions like grants, tourism, healthcare, fuel taxes for highway improvements, etc.
The special revenue fund is a self-sustaining fund that is not supported by the government's other revenue sources. Its expenses are funded only by specific revenue sources. Examples of revenue sources that are frequently restricted include gasoline taxes, sales taxes, and taxes on cigarettes. Special revenue funds are frequently employed to account for such revenue, which must be used to finance a particular expenditure like road maintenance in the given scenario. So therefore the correct answer is C. Special Revenue Fund, the state collected gasoline taxes, which in accordance with state law were dedicated solely to the maintenance of state roads.
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which ice cream company originated in a renovated gas station in vermont
Ben & Jerry's ice cream company originated in a renovated gas station in Vermont.
Beginning in 1978 with two high school friends named Ben and Jerry, Ben & Jerry's journey started in a petrol station in Burlington, Vermont that had been rebuilt. They created a values-driven company that is as iconic as its blissful ice cream.
The company Ben & Jerry's Homemade Holdings Inc., trading produces sorbet, frozen yoghurt, and ice cream. Over a few decades, the company evolved from a tiny ice cream shop to a global brand. Although it is a part of the international giant Unilever, it was sold to them in 2000. With its factory located in Waterbury, Vermont, and its current headquarters in South Burlington, Vermont.
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Provide three example of game theory in financial decision making
Full answers please
The game theory guides financial decision-making by optimizing bidding in auctions, setting competitive prices, and making strategic investments.
Game theory offers valuable insights into financial decision-making, exemplified by the following applications:
1. Auctions: Game theory optimizes bidding strategies, considering factors like valuation, competitors' actions, and overbidding risk. It guides bidders to determine the best approach, maximizing chances of winning while minimizing costs.
2. Price competition: Game theory analyzes pricing strategies in competitive industries. The Bertrand model predicts rivals' reactions to price adjustments, aiding firms in setting optimal prices to maximize profits and assess market outcomes.
3. Strategic investments: Game theory aids decision-making in investment choices. It assesses risks and rewards when entering new markets or investing in research. By considering potential outcomes, rival responses, and payoffs, firms can identify optimal strategies for long-term profitability.
Overall, game theory guides financial decision-making by optimizing bidding in auctions, setting competitive prices, and making strategic investments.
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Discuss the importance of the design, development, and
deployment of secure information technology systems in the public,
private, and not-for-profit sectors. Why is this important?
It starts with re-establishing our understanding of what DevOps is in order to better shape DevSecOps.
As many people understand it, DevOps is a collection of practices and technologies that combines the creation of software and apps with the operation of information technology (IT). Any organization that wants to stay competitive in today's quick-paced market should implement DevOps since it will speed up the deployment of apps and services.
The DevOps concept, which incorporates security practices into every aspect of DevOps, is expanded by DevSecOps.
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In your own words (or give an example if you like), differentiate cost-plus regulation and price-cap regulation for natural monopolies.
Cost-plus regulation and price-cap regulation are two different methods of regulating the prices that natural monopolies charge their customers.
Cost-plus regulation involves allowing the natural monopoly to charge a price that covers all of their costs, plus a markup that gives them a reasonable profit. This markup is typically set by the regulator and can vary depending on the specific circumstances of the natural monopoly. Cost-plus regulation is designed to ensure that the natural monopoly can cover all of its costs and earn a reasonable profit, while still charging a price that is affordable for customers. On the other hand, price-cap regulation involves setting a cap on the maximum price that the natural monopoly can charge its customers. This cap is typically set based on the rate of inflation or some other measure of price increases, and it is designed to prevent the natural monopoly from charging excessive prices.
An example of cost-plus regulation might be a natural gas utility that operates in a region with no competition. The regulator might determine that the utility's costs are $100 million per year, and that a reasonable profit margin would be 10%. Under cost-plus regulation, the utility would be allowed to charge its customers $110 million per year, which would cover all of its costs and earn it a reasonable profit. An example of price-cap regulation might be a telecommunications company that operates as a natural monopoly in a region. The regulator might set a cap on the company's prices that limits price increases to the rate of inflation plus 1%. If the rate of inflation is 2%, then the company would only be able to increase its prices by 3% per year.
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Given the following model: 1- State the endogenous variables, and the exogenous variables of the model. 2- Find the slope of the IS curve using total differentiation. 3- What is the sign of the slope of the IS curve? Why?
An exogenous variable in an economic model is one whose value is chosen external to the model and forced onto it, and an exogenous change is a change to an exogenous variable. An endogenous variable, on the other hand, is one whose value is decided by the model.
The marginal rate of substitution is used to calculate the slope of the IC curve, which is represented as "Change in Y/Change in X." Because a falling interest rate (i) raises anticipated investment expenditure (I), which raises aggregate demand and raises the income equilibrium level, the IS curve has a negative slope. The IS curve slopes downward. Investment demand rises as a result of falling interest rates, which has a multiplier effect on consumption.
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Can companies set Price Floor other than the government? For instance, Amazon increasing the minimum wage during the pandemic for its workers. Is this concept also called Price Floor or is it another concept in Microeconomics. Because Price Floor is mainly set by the government but if companies like Amazon increasing minimum wage, is it following the concept of Price Floor as well?
No, the concept of a price floor is not applicable to voluntary wage increases by companies like Amazon.
Is a price floor set by the government the same as a voluntary wage increase by a company like Amazon?In microeconomics, a price floor typically refers to a minimum price set by the government to prevent the market price from falling below a certain level.
However, in the context of labor economics, the concept of a price floor is not commonly used.
When companies like Amazon increase the minimum wage for their workers, it is not considered a price floor.
Instead, it is seen as a voluntary decision by the company to set a higher wage level for their employees.
While both price floors and minimum wage increases aim to establish a minimum threshold, they operate in different economic contexts and have different mechanisms of implementation.
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A machine is purchased for an invoice price of $30,000. Below table shows the operating and maintenance costs and the salvage value for each year of service. If i=12%, what is the economic service life for this machine?
The economic service life of the machine is 5 years, as it is the year when the costs and salvage value are optimized in terms of present value.
To determine the economic service life of the machine, we need to compare the present value of the costs and salvage value for each year and find the year when the total present value is minimized.
Here is the table of costs and salvage value:
Year Operating and Maintenance Cost Salvage Value
1 $6,000 $10,000
2 $8,000 $6,000
3 $10,000 $4,000
4 $12,000 $2,000
5 $14,000 $0
Using the present value formula, we can calculate the present value of each cost and salvage value for each year using the interest rate of 12%.
The present value (PV) for each year's cost or salvage value can be calculated using the formula:
PV = Cost / (1 + i)ⁿ
where i is the interest rate and n is the year.
Calculating the present value for each year, we get:
Year Operating and Maintenance Cost (PV) Salvage Value (PV)
1 $5,357 $8,929
2 $6,250 $4,464
3 $6,536 $2,653
4 $6,536 $1,493
5 $6,214 $0
Now, we can sum up the present values for each year:
Year Total Present Value
1 $14,286
2 $10,714
3 $9,189
4 $8,029
5 $6,214
From the table, we can observe that the total present value is minimized in the 5th year, with a value of $6,214.
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Behavioural Finance assumes;
Select one:
a.
investors expect that past price patterns in markets can be used to predict future prices
b.
careful study of firm accounts enables investors to find underpriced shares
c.
markets are always efficient so no abnormal profit opportunities are possible
d.
investors do not always behave in a rational, profit-maximising, manner
e.
investors always try to minimise risk regardless of return
investors do not always behave in a rational, profit-maximizing manner. Behavioural Finance assumes that investors are not always rational in their decision-making and may be influenced by cognitive biases, emotions, and social factors.
It recognizes that individuals may deviate from traditional economic assumptions of rationality and act in ways that are not purely profit-maximizing. Instead, investors may exhibit behavioral biases such as overconfidence, loss aversion, herding behavior, and anchoring. By acknowledging these behavioral biases, behavioural finance seeks to understand and explain the psychological factors that influence investor behavior and decision-making in financial markets.
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a customer is short an abc jan 60 call. the position has a profit that the customer wishes to capture. the proper order to enter is a(n):
A customer is short an ABC Jan 60 Call. The position has a profit that the customer wishes to capture. The proper order to enter is a(n): B. closing purchase
A closing purchase is a transaction when the buyer intends to decrease or eliminate a short position in either a stock or a specific series of options. Traders, especially those who deal in options, refer to it as "buy to close" in common parlance.
When a customer sells a call option, they are said to be short the option. The buyer of this short position must purchase (close) the same call option in order to benefit from it. The order in question is a "closing purchase" order. By repurchasing the call option, the customer essentially closes their short position and collects any profits.
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Complete Question:
A customer is short an ABC Jan 60 Call. The position has a profit that the customer wishes to capture. The proper order to enter is a(n):
A. opening purchase
B. closing purchase
C. opening sale
D. closing sale
What is your assessment of competitors secretly hiring consulting firms to block Walmart’s entry into new communities? Is this an ethical practice? Is this a fair practice with respect to competitor stakeholders?
Warby parker and vision spring take into consideration company profits, human capital, and the environment in which the firm operates. Option a is the right choice.
The information, skills, and health that people invest in and amass throughout the course of their life provide them the opportunity to achieve their potential as contributing members of society.
Human capital encompasses qualities that employers appreciate, such as loyalty and punctuality, as well as resources like education, training, intellect, skills, and health.
The phrase "business environment" refers to "the sum of all external factors affecting the organisation and functioning of enterprises and industries. Business environment refers to the whole atmosphere or combination of institutional, social, political, and economic circumstances that govern how businesses operate.
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Given: 3-month p.a.interest rates are 6% in the U.S. and 2% in Japan. The spot exchange rate for Japanese yen is 108.4 ¥/$ and the 3-month forward rate is F3-mo= 106.9 ¥/$. You wish to borrow yen. How can you effectively (synthetically) borrow ¥100,000,000 for three months without using the Japanese money market? (List each transaction you would make including the amounts of each currency involved.) What is the implied interest rate on your synthetic yen loan? Should you borrow yen directly or synthetically?
Since the latent interest rate on the synthetic yen loan is -1.83%, that is lower than the interest rate characteristic of 4%, it would be friendlier to borrow yen synthetically
How to Solve the Problem?To efficiently borrow ¥100,000,000 for three months outside using the Japanese money market, you can create a synthetic yen loan by exploiting the interest rate characteristic and forward exchange rates. Here's the process:
Borrow US dollars (USD) in the United States:
Borrow $X in the United States, equivalent to ¥100,000,000 at the spot rate of exchange.
Calculate $X using the spot rate of exchange: $X = ¥100,000,000 / 108.4 = $921,658.99 (approximately).
Convert the borrowed USD to yen at the forward rate:
Convert $X to yen at the forward rate of exchange.
Calculate the yen equivalent utilizing the forward exchange rate: ¥100,000,000 = $X × 106.9 = $X × 106.9 = $921,658.99 × 106.9 = ¥98,420,948.69 (nearly).
Use the borrowed yen for three months.
Repay the yen loan at the end of three months:
Convert the yen loan back to USD at the spot exchange rate.
Calculate the USD equivalent utilizing the spot exchange rate: $Y = ¥98,420,948.69 / 108.4 = $907,536.78 (nearly).
The implied interest on your synthetic yen loan can be calculated in this manner:
Calculate the interest paid in yen: Interest_paid_yen = ¥100,000,000 - ¥98,420,948.69 = ¥1,579,051.31 (approximately).Calculate the interest rewarded in USD: Interest_paid_USD = $907,536.78 - $921,658.99 = -$14,122.21 (nearly).Calculate the implied interest: Implied_interest_rate = (Interest_paid_USD / $X) × (12 / 3) × 100.Substituting the values: Implied_interest_rate = (-$14,122.21 / $921,658.99) × (12 / 3) × 100 ≈ -1.83%.The latent interest rate on your artificial yen loan is nearly -1.83%.
To determine either you should obtain yen directly or synthetically, compare the tacit interest rate on your artificial yen loan accompanying the interest rate characteristic between the two nations.
Since the latent interest rate on the synthetic yen loan is -1.83%, that is lower than the interest rate characteristic of 4%, it would be friendlier to borrow yen synthetically alternatively borrowing straightforwardly from the Japanese money market.
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If tax revenues are more than the government expenditures in a
year, the budget deficit would be negative.
Answer:
Reason:
The aggregate supply curve is shifted leftward by an increase
in tax rates.
The statement "If tax revenues are more than the government expenditures in a year, the budget deficit would be negative. The aggregate supply curve is shifted leftward by an increase in tax rates. " is false as budget deficit occurs when government expenditures exceed tax revenues.
Tax revenues exceeding government spending over the course of a year indicates a budget surplus rather than a deficit for the government. When spending by the government exceeds revenue from taxes, a budget deficit results.
The justification given is also incorrect. The relationship between the general level of prices and the volume of goods and services that businesses are willing to supply is represented by the aggregate supply curve. Rather than changes in tax rates, it is typically affected by variables like input costs, technology and productivity. Tax rate changes may affect aggregate demand, which in turn may have an impact on the level of overall economic activity but they do not directly affect the aggregate supply curve.
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The question is incomplete, complete question "Answer- If tax revenues are more than the government expenditures in a year, the budget deficit would be negative.
Reason: The aggregate supply curve is shifted leftward by an increase in tax rates.
Is the answer and the reason stated correct?"
The business cycle refers to the: O periodic but irregular up-and-down movement in real GDP. O periodic but regular up-and-down movement in production. O movement of the economy from its pre-recession peak to its recessionary trough.
The business cycle refers to the periodic but irregular up-and-down movement in real GDP, representing the fluctuating pattern of economic growth and contraction over time.
The business cycle is a recurring pattern of economic expansion and contraction that occurs over time. It is characterized by alternating periods of growth (expansion) and decline (contraction) in the economy. During the expansion phase, the economy experiences increased production, employment, and consumer spending, leading to economic growth.
However, this phase is followed by a contraction phase, marked by a decline in economic activity, lower production, and higher unemployment rates. The business cycle captures these fluctuations in real GDP, reflecting the cyclical nature of economic activity and providing insights into the overall health and performance of the economy.
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3.Valuing a property based on sale prices for similar properties
is called the:
Select one:
a. income approach
b. cost approach
c. investment analysis approach
d. comparative sales approach
"
comparative sales approach. Valuing a property based on sale prices for similar properties is commonly referred to as the comparative sales approach, also known as the market approach or sales comparison approach.
This approach involves analyzing recent sales of comparable properties in the same area to estimate the value of the subject property. Under the comparative sales approach, the valuator or appraiser identifies similar properties, often referred to as "comps," that have recently sold. They then make adjustments for any differences in characteristics, such as size, condition, location, or amenities, between the subject property and the comparable properties.
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The volatility of the market portfolio is 10% and it has an expected return of 7.5%. The risk-free rate is 2.5%.
a. Compute the beta and expected return of each stock.
b. Using your answer from part a, calculate the expected return of the portfolio.
c. What is the beta of the portfolio?
d. Using your answer from part c, calculate the expected return of the portfolio and verify that it matches your answer to part b.
Please add the calculating formulas.
The volatility of the market portfolio is 10% and it has an expected return of 7.5%. The risk-free rate is 2.5%. To compute the beta (β) and expected return of each stock.
a. We need the following information.
1. Market portfolio volatility (σm) = 10%
2. Market portfolio expected return (Rm) = 7.5%
3. Risk-free rate (Rf) = 2.5%
The formula to calculate beta (β) is:
β = Covariance(stock, market) / Variance(market)
The formula to calculate the expected return of a stock (Rs) using the Capital Asset Pricing Model (CAPM) is:
Rs = Rf + β * (Rm - Rf)
b. The expected return of the portfolio (Rp) can be calculated using the weighted average of the individual stock expected returns. If the portfolio contains stocks with weights w1, w2, ..., wn and their corresponding expected returns are R1, R2, ..., Rn, then the expected return of the portfolio is:
Rp = w1 * R1 + w2 * R2 + ... + wn * Rn
c. The beta of the portfolio (βp) is calculated as the weighted average of the individual stock betas. If the portfolio contains stocks with weights w1, w2, ..., wn and their corresponding betas are β1, β2, ..., βn, then the beta of the portfolio is:
βp = w1 * β1 + w2 * β2 + ... + wn * βn
d. The expected return of the portfolio can also be calculated using the portfolio beta and the CAPM formula:
Rp = Rf + βp * (Rm - Rf)
By using these formulas, we can solve for the values in parts a, b, c, and d.
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Which of the following is true regarding the concept of causation? O A. It states that if event A causes event B, then event B must also cause event A. O B. It states that if event A causes event B, then event B cannot have a causal effect on event O C. For any two events that occur, economists state that the first must have caused the second D. It describes how one event can bring about change in another.
The correct statement regarding the concept of causation is: D. It describes how one event can bring about change in another. Causation refers to the relationship between two events, where one event (the cause) leads to or brings about a change in another event (the effect).
It implies that there is a causal link or relationship between the two events, where the occurrence of the cause event results in the occurrence or change in the effect event. It is important to note that causation does not imply that the effect event necessarily causes the cause event or that there is a one-to-one relationship between cause and effect. It simply describes the relationship where one event influences or brings about change in another event.
Economists, as well as researchers in various fields, analyze causation to understand the relationships between variables and to determine the factors that contribute to specific outcomes or changes. By identifying causal relationships, they can make predictions, explain phenomena, and develop strategies for intervention or improve
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A. Determine the amount that you should deposit in order to have
N$ 90 000 in an account that pays an annual interest rate of 12%
compounded semi-annually, over a period of 10 years?
B.
Tulonga Enterp
It is unclear what specific information or context is missing that needs clarification to answer the question.
A. How much should you deposit to have N$90,000 in an account with a 12% annual interest rate compounded semi-annually over 10 years?In question A, you are asked to calculate the initial deposit amount required to accumulate N$ 90,000 in an account over a period of 10 years.
The account pays an annual interest rate of 12% compounded semi-annually, which means that the interest is calculated twice a year.
In question B, there seems to be incomplete information provided regarding Tulonga Enterprises.
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For a country, its national output or income (Y) follows a Cobb-Douglas function as below. For example, the function in 2021 is Yz021 - 26°21- Here K indicates total capital input and Lis total labor input. And we have a -0.5. (a) What is the share of capital and labor of total national income? If K is 64 and L is 121, how much is the total output in 2021?
The total output in 2021 is 88 times the measure of total factor productivity (A).
The Cobb-Douglas function for a country's national output or income (Y) is given by: Y = AK^aL^(1-a), where A is the measure of total factor productivity, K is the total capital input, L is the total labor input, and a represents the share of capital in national income, assuming that labor's share is 1-a.
Given the function Yz021 - 26021 and a value of -0.5, we can see that the share of labor in national income is 1-a, or 1-(-0.5) = 1.5. This means that the share of capital in national income is 0.5.
To calculate the total output in 2021, we can substitute the given values of K and L into the Cobb-Douglas function as follows:
Y = AK^aL^(1-a) Y = A(64^0.5)(121^0.5) Y = A(8)(11) Y = 88A
Thus, the total output in 2021 is 88 times the measure of total factor productivity (A).
Overall, the Cobb-Douglas function provides a useful framework for analyzing the determinants of national income, including the contributions of labor and capital inputs and total factor productivity. By understanding the relationships among these variables, policymakers, analysts, and investors can gain insights into the drivers of economic growth and the potential impact of various policies or market conditions on national output and income.
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Contributed capital results when a company buys a new delivery truck. True or False
False. A corporation does not contribute capital by purchasing a new delivery vehicle. The term "contributed capital" refers to the money that investors or shareholders provide to a business in exchange for ownership shares (stock).
It is often raised by the issue of new shares, and it symbolizes the first contributions made by shareholders to finance the company's activities.
When a business purchases a new delivery truck or any other asset, it is normally included on the balance sheet as a non-current asset. Except in cases when the business issues additional shares to raise money particularly for the acquisition, the truck purchase would not immediately affect contributed capital.
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In sequential order, the four phases of the business cycle are a. expansion, recession, peak, and trough. b. trough, peak, expansion, and recession. c. peak, recession, trough, and expansion. d. recession, trough, peak, and expansion. The length of a complete business cycle a. varies from about 1 to 2 years to as long as 5 years. b. is generally about 3 years. c. varies from about 2 to 3 years to as long as 10 years. d. varies greatly in duration and intensity. Seasonal variations and long-run trends complicate the measurement of the business cycle because
a. seasons vary so the changes are not consistent. b. normal seasonal variations do not signal boom or recession. c. it is difficult to treat all the variations the same when the causes are different. d. long-term trends have only been measured recently. The business cycle affects output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables because
a. these goods are expensive and require regular payments. b. these goods do not last, so purchases cannot be postponed. c. these goods last, so that purchases can be postponed. d. these goods last, so that purchases cannot be postponed.
In sequential order, the four phases of the business cycle are expansion, recession, peak, and trough.
The length of a complete business cycle varies from about 1 to 2 years to as long as 5 years.
Seasonal variations and long-run trends complicate the measurement of the business cycle because seasons vary so the changes are not consistent.
The business cycle affects output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables because these goods last, so that purchases cannot be postponed.
What does the term "business cycle" mean?
A business cycle is a nation's naturally occurring expansion and contraction of economic growth over a period of time. It is sometimes referred to as a commerce cycle or an economic cycle. The growth and decline of a nation's gross domestic product (GDP) marks the beginning and end of it.
The business cycle model demonstrates how a country's real GDP changes over time, passing through several phases as total output rises and falls. Long-term analysis of the business cycle reveals a constant rise in the economy's potential output.
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