The effective annual return represents the annualized rate of return on an investment, taking into account the number of compounding periods and the difference between the purchase price and par value. In this case, the T-bill is offering an effective annual return of approximately 6.88.
To calculate the effective annual return on the T-bill, we can use the following formula:
Effective Annual Return =
((Par Value - Purchase Price) / Purchase Price) * (365 / Days to Maturity)
Given that the T-bill has a par value of $10,000, a purchase price of $9,556, and a maturity of 245 days, we can calculate the effective annual return as follows:
Effective Annual Return = (($10,000 - $9,556) / $9,556) * (365 / 245) = (444 / $9,556) * 1.4898 ≈ 0.046 * 1.4898 ≈ 0.0688
Therefore, the effective annual return on the T-bill is approximately 6.88% (rounded to zero decimal places).
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What is a difference between being cheap and rich?
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%. ignoring taxes, find the effect of the two increases on her purchasing power. showwork
Answer:
She lost $754.05.
Explanation:
Giving the following information:
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.
The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.
Increase in salary= 52,000*1.025= $53,300
Inflation effect= 52,000/(1-0.038)= $54,054.05
To maintain her purchasing power, now, she needs to earn $54,054.05.
She lost $754.05.
Consider a stock portfolio consisting of shares of 4 firms. Their values today, AUG 10, 2021 in the portfolio are $3,000,000; $2,500,000; $2,500,000 and $2,000,000. Their respective betas with the SP500 index are: 1.4; 1.7; 1.3 and 0.7. The respective returns on these stocks over last year were: 11%; 5%; -4% and 2%.
2.1 Calculate the portfolio’s beta.
2.2 Calculate the portfolio’s annual rate of return.
2.3 Today, AUG 10, 21, the price of the DEC2021 SP500 Index futures is:
FOCT 30, DEC = 4,500. The SP500 Index futures dollar multiplier is $250.
Use a time table and show how to open a two-month hedge to protect the portfolio value using h = .8.
The portfolio's annual rate of return is 3.95%.We would need to round down to the nearest whole number. We would need to buy or sell 28 contracts.
2.1 To calculate the portfolio's beta, we need to find the weighted average of the individual betas of the stocks in the portfolio. The beta measures the sensitivity of the stock's returns to changes in the overall market.
First, let's calculate the total value of the portfolio:
$3,000,000 + $2,500,000 + $2,500,000 + $2,000,000 = $10,000,000
Next, we'll calculate the weights of each stock in the portfolio by dividing the value of each stock by the total value of the portfolio:
Weight of Stock 1 = $3,000,000 / $10,000,000 = 0.3
Weight of Stock 2 = $2,500,000 / $10,000,000 = 0.25
Weight of Stock 3 = $2,500,000 / $10,000,000 = 0.25
Weight of Stock 4 = $2,000,000 / $10,000,000 = 0.2
Now, we'll calculate the portfolio's beta by multiplying each stock's beta by its respective weight and summing them up:
Portfolio Beta = (0.3 * 1.4) + (0.25 * 1.7) + (0.25 * 1.3) + (0.2 * 0.7)
Portfolio Beta = 0.42 + 0.425 + 0.325 + 0.14
Portfolio Beta = 1.32
Therefore, the portfolio's beta is 1.32.
2.2 To calculate the portfolio's annual rate of return, we need to find the weighted average of the individual returns of the stocks in the portfolio.
We'll use the same weights as calculated in step 2.1.
Portfolio Annual Rate of Return = (0.3 * 11%) + (0.25 * 5%) + (0.25 * -4%) + (0.2 * 2%)
Portfolio Annual Rate of Return = 0.033 + 0.0125 - 0.01 + 0.004
Portfolio Annual Rate of Return = 0.0395 = 3.95%
Therefore, the portfolio's annual rate of return is 3.95%.
2.3 To calculate the price of the DEC2021 SP500 Index futures, we need to use the given information:
Price of the DEC2021 SP500 Index futures = FOCT 30, DEC * Dollar Multiplier
FOCT 30, DEC = 4,500
Dollar Multiplier = $250
Price of the DEC2021 SP500 Index futures = 4,500 * $250 = $1,125,000
Therefore, the price of the DEC2021 SP500 Index futures is $1,125,000.
To open a two-month hedge to protect the portfolio value using h = 0.8, we need to determine the number of futures contracts to buy or sell. The number of contracts can be calculated using the following formula:
Number of contracts = (Portfolio Value * h) / (Price of the futures * Dollar Multiplier)
Number of contracts = ($10,000,000 * 0.8) / ($1,125,000 * $250)
Number of contracts = $8,000,000 / $281,250
Number of contracts = 28.44
Since we can't have fractional contracts, we would need to round down to the nearest whole number. Therefore, you would need to buy or sell 28 contracts.
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the best definition of estate planning is: group of answer choices investment planning titling and beneficiary naming a plan for managing property during lifetime and at death a plan for the disposition of all assets at death
A strategy for handling property both during one's life and after death is the best definition of estate planning.
Estate planning is the process of organizing duties to handle a person's financial condition in the case of their incapacity or passing. The distribution of assets to heirs, the payment of estate taxes and debts, as well as additional issues like the guardianship of minors and pets, are all included in the planning.
The majority of estate plans are created with the assistance of an estate law professional. Estate planning often entails a number of processes, such as creating wills, evaluating accounts, and detailing assets and debts.
Making decisions on how to protect, administer, and distribute a person's assets after death is known as estate planning. In addition, consideration is given to how a person would manage their financial obligations and assets in the event of incapacity.
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organizations cannot gain a competitive advantage by enhancing existing products or services. true false
The given statement "organizations cannot gain a competitive advantage by enhancing existing products or services." is false as it is a way to scale business.
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Cost structure, branding, the standard of the product offerings, the distribution system, intellectual property, and customer service are just a few examples of the factors that are thought to contribute to competitive advantages.
competitive advantages tend to be things competitors cannot easily replicate or imitate. Businesses can figuratively dig moats around themselves to enclose competitive advantages, which Warren Buffet refers to as economic moats.
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What is division of labor? A. Another name for specialization, this is when an individual focuses on one specific skill in the field. B. This is when an individual focuses on many different skills and aspects of a business. C. This is when an organization can produce goods more cost effectively when it produces higher volumes of that good. D. This is when an organization is able to produce goods at a lower cost and sell for a lower cost to make a profit.
Answer:
A
Explanation:
division of labour means breaking down the production process and giving to task to workers.
What is forms of buisness??
Answer and Explanation:
Some forms of business are sole proprietorship, partnership, corporation, and s corporation.
the _____ theory allows free market forces to determine how much to trade with minimal government intervention.
The free market theory allows free market forces to determine how much to trade with minimal government intervention. In a free market, prices are set by supply and demand, and individuals and businesses are free to make their own economic decisions.
The free market theory is rooted in the belief that market forces are the most efficient means of allocating resources in an economy. The theory suggests that the interaction of supply and demand in a free market will result in a price that reflects the true value of a good or service. In a free market, businesses and consumers are free to make their own decisions about what to produce, consume, and invest in, based on their own self-interest.
In a free market, businesses must compete with each other to attract customers, which drives innovation and efficiency. Second, the theory emphasizes the importance of property rights and the rule of law in protecting individuals and businesses from coercion or exploitation.
While the free market theory is often associated with laissez-faire economics, it is important to note that there are limitations to free markets. Market failures can occur when the market fails to allocate resources efficiently, or when there are externalities that are not accounted for in market transactions. In such cases, government intervention may be necessary to correct market failures and ensure the optimal allocation of resources.
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When considering the reliability of the management for a business opportunity, what else should one consider at this time?
When considering the reliability of management for a business opportunity, there are several factors to consider in addition to their track record.
Some additional factors needed to be considered are:
Leadership style: The leadership style of management can have a significant impact on the success of a business. Look at how the management team communicates, delegates responsibilities, and makes decisions.Industry expertise: Management should have a strong understanding of the industry in which the business operates. They should have knowledge of market trends, competitors, and challenges faced by businesses in the industry.Financial management: Good financial management is crucial to the success of any business. Check if the management team has experience in financial planning, forecasting, and budgeting.Vision and strategy: The management team should have a clear vision for the business and a well-defined strategy for achieving its goals. They should be able to articulate the mission and goals of the business.Employee relations: The way management treats employees can impact employee morale, productivity, and retention. Look at the management team's approach to hiring, training, and promoting employees.Reputation and ethics: A business's reputation can be affected by the actions of its management team. Check for any past controversies, ethical lapses, or legal issues involving the management team.Communication skills: Communication skills are essential for effective leadership. Check if the management team communicates well with employees, customers, and other stakeholders.These are some factors to consider when assessing the reliability of management for a business opportunity. By considering these factors, you can gain a more comprehensive understanding of the management team's strengths and weaknesses and make a more informed decision about the opportunity.
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It is a good idea to get and use an many credit cards as possible to build credit history. True False
target audience → the group of people at whom advertisements are aimed
True
False
A text file is a file that is created with a text editor and contains only printable letters, numbers and symbols.
True
False
Answer:
true
Explanation:
true
What is a sales forecast?
A. A prediction of what other businesses will make similar products
B. A prediction of how many customers a business will have visit its
store
C. A prediction as to the volume of sales that a business expects to
make in the upcoming future
A sales forecast is A prediction as to the volume of sales that a business expects to make in the upcoming future. Thus the correct option is C.
What is the objective of the sales Forecast?A sales forecast is a projection of the engagements that will go through the selling process and is a statement of anticipated sales revenue that expresses how much your organization anticipates selling within a specific time frame.
Making well-informed choices about the management of the firm, including decisions about staffing and inventory, new product lines, and prospective marketing initiatives, is aided by sales predictions.
By the use of sales forecasting, firms can more correctly predict their expenses and revenue. Time and money wasted on unsuitable candidates or customers must be reduced for better prospecting.
Therefore, option C is appropriate.
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30 points please help!
Which of the following are NOT considered employment taxes?
a. real estate taxes
b. social security taxes
c. self-employment taxes
Answer:
B.
Explanation:
Social Security is Payroll Tax.
which feature should be used prior to finalizing a presentation to ensure that the audience members with disabilities will be able to understand the message that a presenter is trying to get across
Answer:
B: Accessibility Checker
Explanation:
narrowcasting is most related to: select one: a) cost-per-contact. b) long-lasting message. c) repetition of ads. d) audience selectivity.
The statement "narrowcasting is most related to option d) audience selectivity.
What is narrowcastingNarrowcasting means sending special messages to a specific group of people. It is the opposite of talking to many different people with a message that is not specific to anyone.
When narrowcasting, one focus on choosing a particular group of people who are probably interested in or need the message we are sending. This depends on different things like age, what people like, how they act, or things that matter. The concept of narrowcasting is closely associated with audience selectivity
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Explanation + Graph
Using the IS-LM model curve, if investment is sensitive to interest rates and money demand is not responsive to interest rates. Monetary policy is more effective than fiscal policy. Right or wrong? Prove it.
The statement Monetary policy is more effective than fiscal policy when investment is sensitive to interest rates and money demand is not responsive to interest rates is true This can be proved with the help of the IS-LM model curve. The IS-LM model is a macroeconomic model that shows the relationship between interest rates and output in the economy.
The IS curve represents the relationship between interest rates and investment, while the LM curve represents the relationship between interest rates and money demand. The intersection of these two curves represents the equilibrium point of the economy.
The IS curve slopes downwards from left to right because when interest rates are high, the cost of borrowing increases, which reduces investment. On the other hand, the LM curve slopes upwards from left to right because when interest rates are high, the opportunity cost of holding money increases, which reduces money demand.
When investment is sensitive to interest rates, the IS curve is steep, and when money demand is not responsive to interest rates, the LM curve is flat. This means that monetary policy can be more effective than fiscal policy because changes in the money supply can have a significant impact on interest rates, which can in turn affect investment.
For example, if the central bank increases the money supply, interest rates will fall, which will encourage more investment. On the other hand, fiscal policy, such as government spending or taxation, may not have as much of an impact on interest rates and investment in this scenario.
In conclusion, when investment is sensitive to interest rates and money demand is not responsive to interest rates, monetary policy is more effective than fiscal policy. This can be seen in the IS-LM model curve, where changes in the money supply can have a significant impact on interest rates, which in turn affects investment.
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(ANSWERED) Which of the following techniques can be used to evaluate a job candidate's qualifications?
done
A.
Call and talk with the applicant's references.
B.
Evaluate applicant's private correspondence.
close
C.
Observe the applicant in his or her present job situation.
D.
Call and talk with applicants' friends and family.
ANSWER: A - Call and talk with the applicant's references.
Explanation:
.
Evaluate applicant's private correspondence.
close
after developing the budget for advertising the kia soul automobile, marketing managers at kia then determined what proportion of that budget would be spent on television, radio, and magazine advertisements based on the cost effectiveness of each. this subsequent allocation of the budget is known as a(n) plan.
The most successful type of advertising is thought to be word-of-mouth. Strong credibility, high levels of audience focus, and positive audience response are all present.
What is Effective advertising makes people remember your name?Potential clients are informed about your goods or services by effective advertising that reaches them. Advertising should ideally draw in potential customers and persuade them to use your product. Whatever the technique, all of your advertising should be concise and consistently reflect the unique positioning statement of your company.Advertising is communication that aims to inform, educate, persuade, and remind people about your brand or company. To be effective, advertising needs to work with other marketing strategies and corporate components. Advertising must be intrusive, or it won't get your attention long enough for you to read or hear it.In order for advertising to be successful, it must also be believable, distinctive, and memorable. It must be based on a sound positioning plan, just like all efficient marketing support. A media schedule for ad frequency, the key component for ad memorability, must be provided for any advertising campaign, and this requires sufficient funding.To Learn more About advertising refer To:
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the best way for a firm to close the knowledge gap is to
The best way to close knowledge gap in an organization to set appropriate service criteria, train employees to meet and exceed those criteria and measure service performance."
In an organization the knowledge gap refers to the disparity in access to information, skills, expertise, know-how between or among the staffs and management of the organization.
The best way to close the knowledge gap includes
Setting appropriate service criteria.Training of employees to meet and exceed those criteriaMeasurement of the service performance from time to time."The options to the question includes"
Be more realistic about the services it can provide and at the same time manage customer expectations effectively empower service providers, provide support and incentives and use technology understand customer expectations, Set appropriate service criteria, train employees to meet and exceed those criteria and measure service performance."Learn more about Knowledge gap here
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which organization has stated that, unlike attorneys, expert witnesses do not owe a duty of loyalty to their clients?
The American Psychological Association (APA) has stated that, unlike attorneys, expert witnesses do not owe a duty of loyalty to their clients. Expert witnesses are expected to provide unbiased and objective opinions based on their expertise and professional knowledge, rather than advocating for the interests of their clients.
This allows them to provide impartial testimony and opinions in legal proceedings.
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The worst possible consequence of conflict is ______. A. Stress b. Hurtful words c. Damaged relationships d. Violence.
Answer: Violence
Explanation: Stress is a part of life that most everyone experiences, as well as hurtful words and damaged relationships. With that being said, those answers cannot compare to violence. Violence is the most painful consequence of them all, and it can sometimes be life-threatening.
The amount you owe today is $ (Round to the nearest dollar.) You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $3024, and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly 4 years and 8 months old. You have just made your monthly payment. The mortgage interest rate is 6.177% (APR with semi-annual compounding). How much do you owe on the mortgage today? (Note: Be careful not to round any intermediate steps less than six decimal places)
The amount you owe on the mortgage today is $ XXXX.
To calculate the amount you owe on the mortgage today, we need to consider the remaining term of the mortgage and the interest rate.
First, let's determine the remaining term of the mortgage. The original term was 30 years, which is equal to 360 months. Since the mortgage is 4 years and 8 months old, we can subtract this time from the original term to find the remaining term. 4 years is equal to 48 months, and adding 8 months gives us a total of 56 months. Subtracting 56 months from 360 months, we find that there are 304 months remaining.
Next, let's calculate the outstanding balance on the mortgage. Since you have made every payment on time, we can use the monthly payment amount to calculate the outstanding balance. Using the formula for the present value of an annuity, we can find the present value of the remaining payments. With an interest rate of 6.177% and semi-annual compounding, the monthly interest rate is 0.510425%. Plugging in the values into the formula, we find that the outstanding balance is $XXXX.
Therefore, the amount you owe on the mortgage today is $ XXXX.
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What animal did traders use to travel across the Sahara desert?
Traders who traveled across the Sahara desert used camels as their mode of transportation.
Camels are well-suited for desert travel due to their ability to go for long periods without water and their ability to carry heavy loads. The camels were also used as a source of food and milk for the traders. These animals were crucial to the survival of traders who braved the harsh conditions of the Sahara in order to trade goods such as salt, gold, and ivory.
The use of camels revolutionized trade in the Sahara and enabled traders to travel greater distances and carry heavier loads than ever before. Even today, camels remain an important part of the economy and culture of the Sahara region.
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(13 points) APY is a(n) ____.
A. noncompounding interest rate
B. daily interest rate
C. interest rate advertised by lenders
D. interest rate advertised by borrowers
Answer:
C. interest rate advertised by lenders
Explanation:
APY stands for Annual percentage yield. It is the rate at which deposits earn interest in a checking or savings account. In other words, APY represents the amount of interest a deposit earns for one year when in a bank account.
The APY is a standardized presentation of interest to be earned. It incorporates all considerations, such as the compounding effect. APR makes it possible to compare expected returns from various financial instruments or institutions.
The return on assets for your small business was 11.2% last year and 12.6% this year. your return on assets:____
The return on assets for your small business was 11.2% last year and 12.6% this year. your return on assets: improved.
What is return on assets?Return on assets can be defined as a percentage or ratio that help to show how well a company is doing as to whether they are making profit or making loss from their assets.
Return on assets calculated using this formula
Return on assets =Net income/Total assets
Since the return on assets for the business was previously 11.2% in which this year it was 12.6% this means that the business is profitable and has improved due to the increase in percentage which is 1.4% (12.6%-11.2%).
Therefore the return on assets for your small business was 11.2% last year and 12.6% this year. your return on assets: improved.
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Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserve ratio is 20%. the federal reserve buys a government bond worth $1,500,000 from hubert, a client of first main street bank. he deposits the money into his checking account at first main street bank.
Complete Question:
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. Hubert, a client of First Main Street Bank, deposits $1,500,000 into his checking account at First Main Street Bank.
Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).
Answer:
Dr Assets Reserves $1,500,000
Cr Liabilities Deposits $1,500,000
Explanation:
When the bank borrowed $1.5 million, it increased its cash reserves and the liability with the same amount. The increase in the assets side of T-account was $1,500,000 which increased the bank reserves and the increase in the liability side of the T-account was also $1,500,000 which increased the demand deposits.
The addition of reserves means that the bank can make loans to borrowers and earn interest on it. Likewise, the demand deposit can be withdrawn if Hubert wants to withdraw the amount because the bank is the borrower.
The double entry would be as under:
Dr Assets Reserves $1,500,000
Cr Liabilities Deposits $1,500,000
I
In which book of original entry would you enter the following?
(a) Sales invoice
(b) Debit note-
(c) Cash sale-
(d) Purchase invoice-
(e) Credit note-
Tim Horton wants to raise funds to open a branch of their coffee shop in Trinidad. To raise the funds, Tim Horton would sell bonds 100 $1,000 par value with a coupon interest rate of 6%. The bonds would mature in 15 years and interest would be paid semi-annually. The required rate of return is expected to be 8%.
Requirement:
a) Calculate the value of one bond
b) What is the total amount Tim Horton would raise if all bonds were sold?
Answer:
a) The value of one bond is $837.08.
b) The total amount Tim Horton would raise if all bonds were sold is $83,708.
Explanation:
a) Calculate the value of one bond
This can be calculated as follows:
Annual coupon = Bond face value * Coupon interest rate = $1,000 * 6% = $60
Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)
Where;
r = required semi-annual rate of return = required annual rate of return / number of semi-annual in a year = 8% / 2 = 0.08 / 2 = 0.04
n = number of semi-annuals = number of years * number of semi-annual in a year = 15 * 2 = 30
Substituting the values into equation (1), we have:
Semi-annual coupon discount factor = ((1-(1/(1 + 0.04))^30) / 0.04) = 17.2920333006645
Present value of coupon = ((Annual coupon / number of semi-annual in a year) * Semi-annual coupon discount factor) = (($60 / 2) * 17.2920333006645 = $528.76
Present value of the face value of the bond = Face value of the bond / (1 + r)^n = ($1,000 / (1 + 0.04)^30 = $308.32
Therefore, we have:
Bond value = Present value of coupon + Present value of the face value of the bond = $528.76 + $308.32 = $837.08
Therefore, the value of one bond is $837.08.
b) What is the total amount Tim Horton would raise if all bonds were sold?
Number of bonds expected to be sold = 100
Value of one bond = $837.08
Total amount that would be raised = Number of bonds expected to be sold * Value of one bond = 100 * $837.08 = $83,708
Therefore, the total amount Tim Horton would raise if all bonds were sold is $83,708.
krysta wants to take piano lessons. she asked a teacher how many new pieces she could expect to learn each month. the teacher gave an estimate of 3. write an equation that shows how the total number of pieces krysta would learn, y, depends on the number of months of piano lessons, x.
The required equation is y = 3x which represents the total number of pieces Krysta would learn, where x months of piano lessons.
What is the Linear equation?A linear equation is defined as an equation in which the highest power of the variable is always one.
Krysta wants to learn to play the piano. She inquired with an instructor about the number of new pieces she could anticipate studying each month. The teacher estimated three.
Let y represent the total number of pieces Krysta would learn,
And x represent depends on the number of months of piano lessons,
According to the given situation, we can write the equation would be as:
⇒ y = 3x
Therefore, the required equation is y = 3x which represents the total number of pieces Krysta would learn.
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