The probability that an individual large-cap domestic stock fund had a three-year return of 10% or less is 0.1500.
To calculate the probability that an individual large-cap domestic stock fund had a three-year return of 10% or less, we need to gather the necessary data. We'll assume that we have historical returns of the fund for multiple three-year periods.
1. First, we determine the number of three-year periods where the fund had a return of 10% or less.
2. Next, we divide this number by the total number of three-year periods.
3. Finally, we round the answer to four decimal places.
Let's say we have 100 three-year periods, and in 15 of those periods, the fund had a return of 10% or less.
To calculate the probability:
1. Number of three-year periods with a return of 10% or less: 15
2. Total number of three-year periods: 100
3. Probability = 15 / 100 = 0.15
Rounding this answer to four decimal places, the probability is 0.1500.
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Question 7 Which of the following is not a risk factor?
Unavailability of qualified staff.
Occurrence of unforeseen disputes.
Materials shortages.
Exchange rates.
911 point)
Out of the given options, the unavailability of qualified staff is not a risk factor. Therefore, the first option is correct.
Qualified staff refers to employees who have the required skills, knowledge, and experience to perform their duties correctly and efficiently.
The unavailability of qualified staff is not a risk factor as it is not a characteristic, trait, or exposure that raises the probability of an unfavorable or harmful outcome.
Rather, it is a challenge or issue that needs to be addressed or resolved by hiring or training more employees with the required qualifications and expertise.
Hence first option is correct.
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Calculate the Interest portion of the 20th payment made for a $20,000 five-year loan. Consider an APR of 12% compounded monthly. $149.04
$590.97
$146.08
$444.89
The interest portion of the 20th payment made for a $20,000 five-year loan with an APR of 12% compounded monthly is $146.08.
To calculate the interest portion of the 20th payment, we need to determine the monthly payment amount and then subtract the principal portion of the payment.
First, we need to calculate the monthly interest rate. The APR of 12% compounded monthly can be divided by 12 to get the monthly rate of 1%.
Next, we need to calculate the monthly payment amount using the loan amount, duration, and monthly interest rate. We can use the formula for calculating the monthly payment on a loan:
P = (r * PV) / (1 - (1 + r)^(-n))
Where P is the monthly payment, r is the monthly interest rate, PV is the loan amount, and n is the number of months.
Plugging in the values:
P = (0.01 * 20000) / (1 - (1 + 0.01)^(-60))
P ≈ $424.94
Now, we can calculate the interest portion of the 20th payment. Since it is a five-year loan with 60 monthly payments, the interest portion of the 20th payment can be calculated by multiplying the remaining balance by the monthly interest rate:
Interest portion = Monthly interest rate * Remaining balance
Interest portion = 0.01 * (PV - (P * (1 - (1 + 0.01)^(-20))) / 0.01)
Interest portion ≈ $146.08
Therefore, the interest portion of the 20th payment made for a $20,000 five-year loan with an APR of 12% compounded monthly is approximately $146.08.
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The first phase of the consumer buying process i
gathering information:
evaluating alternatives.
identifying the problem.
selecting the buying location
Option (c), The first phase of the consumer buying process is identifying the problem.
The consumer buying process consists of five phases. The first phase of the consumer buying process is identifying the problem. This phase involves the recognition of a need or want, which requires the consumer to identify a problem or an opportunity.
The next phase of the consumer buying process is gathering information. The consumer researches the various products or services that meet their needs. The third phase is evaluating alternatives. The consumer considers the various options they have identified and decides which is the best. The fourth phase is making a purchase decision, where the consumer decides whether or not to purchase the product or service. The final phase is post-purchase evaluation, where the consumer evaluates the product or service and their decision-making process to determine whether or not they are satisfied with their purchase.
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Case 2 . Breach of Contract Jorge is an antique collector. He travelled to many places to buy collectible items and artifacts. He met James who owns an antique shop in Oman. Jorge was amazed with the antique collections of James. Jorge spotted a fossil of a pre-historic animal which he is willing to buy. Jorge and James had a lengthy discussion and negotiation on the fossil. Eventually, both agreed and James prepared the contract of sale. They agreed that after five days, Jorge would come back to take the fossil upon payment of the agreed price. Jorge came back as agreed upon. However, James said that he is no longer selling the fossil because somebody has agreed to pay at a higher price. Jorge then filed a case against James. Version 1 Page 3 of 13 Tasks: 1. Jorge has the right to claim for damages from James for non-performance. - Yes (Affirmative) - No (Negative) a. Analysis of the case - Determine the case and the given topic. Discuss the background of the case, problem or opportunity, cause, and effect. b. Basis of the arguments - Presentation of provision of laws, concepts, and principle. Discussion of how it relates the case. Present your arguments based on the given topic, case and part based on the following concepts. b.1: Legal b.2: Culture b.3. Economic b.4: Ethics b.5: Religion c. Analysis of the contra-arguments - The contra-argument slides must contain all relevant arguments, reasoning, judgement that will prove and support the side or position of the debating team. Arguments should have reference to the cited provisions of laws, concepts, and principles of culture, economics, ethics, and teachings of religion if any to strengthen and defend the position or side of the debating team. d. Implication of the case - Based on the given topic critically describe the effect of the case based on your side whether pro or con and provide the rights and implication of the case. e. Conclusion - the main points or main arguments used to prove the validity of the arguments. Highlight the main provision or concepts and principles used to support the arguments made.
a. Analysis of the case:
The case involves a breach of contract between Jorge, the buyer, and James, the seller. Jorge had agreed to purchase a fossil from James, and they entered into a contract of sale. However, James reneged on the agreement and refused to sell the fossil to Jorge, citing a higher offer from another buyer. This led Jorge to file a case against James for non-performance.
b. Basis of the arguments:
b.1: Legal: Jorge has the right to claim damages from James for non-performance based on the breach of contract. The contract of sale created a legally binding agreement, and James's refusal to sell the fossil as agreed constitutes a violation of that contract.
b.2: Culture: Depending on the cultural context and norms, there may be expectations of honesty, integrity, and fulfilling agreements. If the cultural values prioritize honoring commitments and maintaining trust, James's actions could be seen as a breach of those cultural norms.
b.3: Economic: From an economic perspective, the breach of contract by James can have financial implications for Jorge. Jorge may have incurred costs in traveling to Oman to purchase the fossil, and the inability to acquire the fossil as agreed could result in lost opportunities or potential profits.
b.4: Ethics: Ethically, it is generally considered wrong to back out of a contractual agreement after both parties have reached a mutual understanding and agreement. James's decision to sell to another buyer despite the existing agreement with Jorge raises ethical concerns regarding fairness, honesty, and fulfilling commitments.
b.5: Religion: Religious teachings often emphasize the importance of honesty, integrity, and fulfilling agreements. Depending on the religious beliefs of the individuals involved, James's breach of contract may be seen as a violation of religious principles.
c. Analysis of the contra-arguments:
The contra-arguments may include claims from James stating that he is not obligated to sell the fossil to Jorge due to the presence of a higher offer from another buyer. However, it would need to be examined whether any clauses in the contract provide James with the right to terminate the agreement under such circumstances.
d. Implication of the case:
The breach of contract by James has implications for both parties involved. Jorge may seek damages to compensate for any losses incurred as a result of James's non-performance. The implication of the case will depend on the legal, cultural, economic, ethical, and religious perspectives discussed earlier.
e. Conclusion:
Jorge has the right to claim damages from James for non-performance due to the breach of the contract of sale. The validity of the arguments is supported by legal principles related to contract law, cultural expectations of fulfilling agreements, economic implications of the breach, ethical considerations of honesty and integrity, and religious teachings on honoring commitments. The breach of contract by James has significant implications for both parties involved, potentially leading to financial losses for Jorge and a potential tarnishing of James's reputation.
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In insurance, underwriting has to do mainly with _____. Responses
taking on a portion of an insurance firm’s risk
taking on a portion of an insurance firm’s risk
accepting liability and guaranteeing payment in the event of a loss
accepting liability and guaranteeing payment in the event of a loss
assessing risk for a particular segment of the market
assessing risk for a particular segment of the market
writing an insurance policy for a group of people
In insurance, underwriting has to do mainly with assessing risk for a particular segment of the market.
Explanation:
Underwriting in insurance refers to the process of evaluating and assessing risks associated with potential policyholders or insurance applicants. It involves analyzing various factors such as the applicant's age, health, occupation, lifestyle, and other relevant information to determine the level of risk they pose to the insurance company. The underwriter's role is to assess the likelihood of a potential loss occurring and to determine the appropriate premium that should be charged to cover that risk. They use actuarial and statistical data to evaluate the risk and make informed decisions regarding the acceptance, classification, or rejection of insurance applications.
The underwriting process is crucial for insurance companies as it helps them maintain a balanced portfolio of risks and ensure their financial stability. By carefully assessing risk, underwriters can determine the appropriate terms and conditions of insurance policies, including the coverage limits, exclusions, and premiums. They aim to strike a balance between providing insurance coverage to individuals and businesses while managing the potential financial impact of claims on the company's profitability. Through effective risk assessment and underwriting practices, insurance companies can mitigate adverse selection and maintain a sustainable business model.
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Matt Johnson delivers newspapers and is putting away $15 at the end of each month from his paper route collections. Matt is 13 years old and will use the money when he goes to college in 5 years. What will be the value of Matt's account in 5 years with his monthly payments if he is earning 5% (APR), 10.5% (APR), or 13% (APR)?
The value of Matt's account in 5 years, with monthly payments of $15, will be approximately $952.44 at 5% APR, $1,060.74 at 10.5% APR, and $1,111.58 at 13% APR.
To calculate the value of Matt's account in 5 years with different annual percentage rates (APRs), we can use the future value of an ordinary annuity formula:
Future Value = Payment * [(1 + APR/12)^(12*n) - 1] / (APR/12)
Using this formula, we can calculate the future value of Matt's account with the given monthly payment of $15 and different APRs for a period of 5 years (n = 5).
For an APR of 5%, the future value will be approximately $952.44.
For an APR of 10.5%, the future value will be approximately $1,060.74.
For an APR of 13%, the future value will be approximately $1,111.58.
The formula for the future value of an ordinary annuity takes into account the monthly payment, APR, and the number of periods (n).
By plugging in the values provided and solving the formula for each APR, we can find the respective future values. As the APR increases, the future value of Matt's account also increases, as the interest earned on the monthly payments becomes higher.
Thus, with a higher APR, Matt's account will have a greater value after 5 years.
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As for-profit competitors Me FedEx and UPS ganed market share, the government-run United States Postal Service (USPS) failed to implement managenal and process innovations. Long chronically short on funding, the USPS has faced even stoffer budget challenges as a result of losing business What are the most likely reasons the USPS failed to innovate? Check all that applyO Lack of resources O Resistance to change O Failure to recognize opportunity O Time to innovate. Organizations can encourage innovation by rewarding it, by designing jobs to support it, and by reinforang a culture of innovation Which of the following statements describes an organization's use of a reward system to promote innovation? Check all that apply O Foursquare schedules demo days during which employees can pitch ideas to management. 3M creates a sense of urgency to innovate by setting breakthrough growth goals DAt Savant Learning Systems, the most innovative employees take an all-expense pad kuury vacation. O Monsanto offers a monetary prize to scientists who develop the biggest commercial break through each year
The most likely reasons the USPS failed to innovate are:
- Lack of resources: The USPS has been chronically short on funding, which can limit its ability to invest in research, development, and innovation initiatives.
- Resistance to change: Like many large organizations, the USPS may have faced internal resistance to change from employees and stakeholders who were comfortable with the status quo and reluctant to adopt new technologies or processes.
- Failure to recognize opportunity: The USPS may have missed opportunities to identify and capitalize on emerging trends and market demands, leading to a lack of innovative solutions to address customer needs.
- Time to innovate: The USPS may have faced operational and bureaucratic challenges that hindered its ability to allocate sufficient time and resources for innovation efforts.
Regarding the use of a reward system to promote innovation, the following statements apply:
- Foursquare schedules demo days during which employees can pitch ideas to management: This approach encourages employees to contribute innovative ideas and provides them with a platform to showcase their concepts.
- 3M creates a sense of urgency to innovate by setting breakthrough growth goals: By setting ambitious goals for innovation and growth, 3M motivates its employees to come up with innovative solutions to meet those targets.
- Savant Learning Systems offers an all-expense paid luxury vacation to the most innovative employees: This incentive rewards and recognizes employees who demonstrate exceptional innovation, providing them with an attractive perk.
- Monsanto offers a monetary prize to scientists who develop the biggest commercial breakthrough each year: By offering a monetary prize, Monsanto incentivizes its scientists to strive for significant breakthroughs and fosters a competitive environment that promotes innovation.
These reward systems serve to encourage and motivate employees to engage in innovative thinking and actions, ultimately driving the organization's innovation efforts.
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A gardener entered into a contract with a landowner under which, for a monthly fee of $200, the gardener would provide the landowner with monthly gardening services for the calendar year. On June 1, the gardener told the landowner that she could no longer afford to work for $200 a month and demanded that she be paid $400 a month. The landowner refused, stating that he already had a valid contract with her and that he did not have to pay any more. The gardener again insisted that she would not work for less than $400. As a result, the gardener and landowner, after much negotiation, agreed in writing on July 1 that the gardener would thereafter be paid $400 a month for the gardening services and that the term of the agreement would be extended through the end of the following year.Is the gardener legally entitled to receive a monthly fee of $400 from the landowner after July 1 of this year?a. Yes, but only for the period from January 1 to December 31 of next year.b. No, because the gardener used economic duress in order to obtain the landowner's agreement to the modification.c. Yes, because the gardener and the landowner mutually agreed to the modify their original contract.d. No, because the gardener was under a preexisting duty to perform the services for $200 a month.
The correct answer is c. Yes, because the gardener and the landowner mutually agreed to modify their original contract.
In contract law, parties have the freedom to modify their contractual obligations as long as they mutually agree to the changes. In this scenario, the gardener and the landowner negotiated and reached a written agreement on July 1 to change the monthly fee from $200 to $400 and extend the term of the agreement through the end of the following year.
This mutual agreement between the parties supersedes the original contract terms. Therefore, after July 1 of this year, the gardener is legally entitled to receive a monthly fee of $400 from the landowner for the gardening services, as agreed upon in the modified contract.
The other options are incorrect:
a. No, because the agreement extends through the end of the following year, not just until December 31.
b. No, economic duress refers to wrongful or unlawful pressure exerted on a party to force them into an agreement. There is no evidence of economic duress in this scenario.
d. No, the preexisting duty rule typically applies when one party attempts to modify a contract by demanding additional compensation for performing a duty they were already obligated to perform under the original contract. However, in this case, the original contract was modified by mutual agreement between the gardener and the landowner.
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financial information related to all seasons company for the month ended june 30, 20y7, is as follows: common stock, june 1, 20y7 $30,000 stock issued in june 20,000 net income for june 87,500 dividends during june 15,000 retained earnings, june 1, 20y7 145,000
The total stockholders' equity is calculated by summing the common stock and retained earnings, resulting in a total stockholders' equity of $267,500.
Statement of Stockholders' Equity
For the Month Ended June 30, 20Y7
Common Stock:
Common stock, June 1, 20Y7 $30,000
Stock issued in June 20,000
Total Common Stock $50,000
Retained Earnings:
Retained earnings, June 1, 20Y7 $145,000
Net income for June 87,500
Dividends during June (15,000)
Total Retained Earnings $217,500
Total Stockholders' Equity $267,500
The statement of stockholders' equity summarizes the changes in the stockholders' equity section of the balance sheet. In this case, the statement reflects the changes in common stock and retained earnings for the month of June 20Y7.
The common stock section shows the beginning balance of common stock on June 1, 20Y7, which was $30,000. Additional stock of $20,000 was issued during June, resulting in a total common stock of $50,000.
The retained earnings section shows the beginning balance of retained earnings on June 1, 20Y7, which was $145,000. Net income for June was $87,500, representing the profit generated during the month. Dividends paid to stockholders during June were $15,000. The total retained earnings at the end of June 30, 20Y7, is $217,500.
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The complete question is
Financial information related to All Seasons Company for the month ended June 30, 20Y7, is as follows: Common stock, June 1, 20Y7 $30,000 Stock issued in June 20,000 Net income for June 87,500 Dividends during June 15,000 Retained earnings, June 1, 20Y7 145,000 Prepare a statement of stockholders' equity for the month ended June 30, 20Y7. If an amount is zero, enter "0"
You have a credit card with an APR of 24.99%, monthly compounding, that has a balance of $6,600. You want to transfer this balance to a different card with an APR of 8.99%, monthly compounding. Assuming that you will make minimum payments of $160 per month for either card, what transfer fee would make you ambivalent between transferring or not?
We can solve for the transfer fee that makes the equation true, which would make you ambivalent between transferring or not.
To determine the transfer fee that would make you ambivalent between transferring or not, we need to compare the total costs of keeping the balance on the current card versus transferring it to the new card.
First, let's calculate the total cost of keeping the balance on the current card.
Since the APR is 24.99% with monthly compounding, we can use the formula:
Total Cost = Balance * (1 + Monthly Interest Rate)^(Number of Months) - Monthly Payments * Number of Months
Using the given values, the total cost on the current card would be:
Total Cost = $6,600 * (1 + 0.2499/12)^(Number of Months) - $160 * Number of Months
Next, let's calculate the total cost of transferring the balance to the new card. With an APR of 8.99% and monthly compounding, we can use the same formula:
Total Cost = Balance * (1 + Monthly Interest Rate)^(Number of Months) + Transfer Fee - Monthly Payments * Number of Months
To find the transfer fee that would make you ambivalent between transferring or not, we need to equate the total costs on both cards:
$6,600 * (1 + 0.2499/12)^(Number of Months) - $160 * Number of Months = $6,600 * (1 + 0.0899/12)^(Number of Months) + Transfer Fee - $160 * Number of Months
Simplifying the equation, we can cancel out the monthly payments:
$6,600 * (1 + 0.2499/12)^(Number of Months) = $6,600 * (1 + 0.0899/12)^(Number of Months) + Transfer Fee
Now, we can solve for the transfer fee that makes the equation true, which would make you ambivalent between transferring or not.
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After looking through her budget, Marie can afford a $250 per month car payment. The sales person at the dealership says most loans for a used car are being financed for 4 years at 4.5% interest.
What cost of car can Marie afford? Also be sure to explain how a down payment effects the amount in this scenario.
Marie can borrow up to 11,565 to purchase a car with a total cost of 12,829.
Let's consider the following when talking about car affordability:
The amount of money you can put down
The length of your loan term
Your monthly payment amount
Since Marie can afford a 250 per month car payment, we can use this information to determine the maximum cost of the car. Assuming that the car loan is for 4 years at 4.5% interest, we can use a loan calculator to determine how much car loan Marie can afford. This loan calculator will tell us how much she can borrow to purchase the car.
To use the loan calculator, Marie must enter the amount of the car loan, the loan term, and the interest rate. Then the loan calculator will provide her with the estimated monthly payment amount, which should not exceed 250.
Let's take an example:
Marie can afford a 250 per month car payment.
She wants to finance a used car with a 4-year loan term at a 4.5% interest rate.
She wants to know the maximum cost of the car that she can afford.
Using a loan calculator, we can determine that she can borrow up to 11,565 to purchase a car with a total cost of 12,829. This amount is after a down payment of 1264.
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You received a breakdown of the general and admin expenses of $140,000 by key activity
below.
Research and development $ 15,000
Recruiting 70,000
Event support expenses 25,000
General and admin expenses 30,000
Total indirect costs $140,000
To learn more about these activities, you interviewed people within the organization and you were able
to learn the following:
i) Research and development cost are incurred to ensure that trending topics are addressed during the
training sessions and that the materials used reflect such topics.
ii) Recruiting is handled by one personnel to identify trainers for all training sessions.
iii) Event support expenses are expenses incurred to coordinate logistics and gather feedback from
training participants. There is a personnel responsible for handling all event support expenses.
iv) General and administrative expenses are for in-house operating expenses that do not fall under any
of the other categories of expenses.
Given the additional information, suggest one reasonable allocation base (cost driver) for each of the
four key activity. Justify your choice. Do not use the allocation base in (c) below.
Note: a cause-and-effect relationship should be evident between the allocation base and activity.
Usually, several potential cost drivers are suggested, and accountants choose the most appropriate.
The suggested allocation bases are: the number of training sessions for research and development costs, the number of trainers for recruiting costs, the number of training events for event support expenses, and total employee hours worked for general and administrative expenses.
Based on the additional information provided, the following allocation bases (cost drivers) can be suggested for each of the four key activities:
i) Research and development: A reasonable allocation base for research and development costs could be the number of training sessions conducted.
Since the objective of research and development is to ensure that trending topics are addressed and materials reflect these topics, the number of training sessions can be a suitable cost driver. The more training sessions conducted, the higher the research and development costs are likely to be.
ii) Recruiting: The number of trainers identified can serve as a reasonable allocation base for recruiting costs. As stated, one personnel handles the recruiting process for all training sessions. Therefore, the number of trainers hired would be directly related to the recruiting costs incurred.
iii) Event support expenses: The allocation base for event support expenses could be the number of training events organized. As mentioned, event support expenses are incurred to coordinate logistics and gather feedback from training participants. The more training events organized, the higher the event support expenses would be.
iv) General and administrative expenses: Since general and administrative expenses encompass in-house operating expenses, an appropriate allocation base could be total employee hours worked.
This allocation base captures the labor-intensive nature of general and administrative activities, and it reflects the time and effort dedicated to these tasks.
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Rhonda's Rackets has debt with a market value of $350,000, preferred stock with a market value of $100,000, and common stock with a market value of $950,000. If debt has a cost of 7%, preferred stock a cost of 9%, common stock a cost of 13%, and the firm has a tax rate of 30%, what is the WACC?
The Weighted Average Cost of Capital (WACC) for Rhonda's Rackets can be calculated by multiplying the cost of each capital component by its respective weight in the capital structure and summing them up.The WACC for Rhonda's Rackets is 11.21%.
The weights of each component are determined by dividing the market value of each component by the total market value of the firm's capital structure.
In this case, the market value of debt is $350,000, preferred stock is $100,000, and common stock is $950,000. The total market value is the sum of these values, which is $1,400,000.
The cost of debt is 7% (0.07), the cost of preferred stock is 9% (0.09), and the cost of common stock is 13% (0.13).
Considering a tax rate of 30% (0.30), the WACC can be calculated as follows:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
Weight of Debt = Market Value of Debt / Total Market Value
Weight of Preferred Stock = Market Value of Preferred Stock / Total Market Value
Weight of Common Stock = Market Value of Common Stock / Total Market Value
WACC = (0.25 * 0.07) + (0.0714 * 0.09) + (0.6786 * 0.13) = 0.0175 + 0.00643 + 0.08818 = 0.1121 or 11.21%
Therefore, the WACC for Rhonda's Rackets is 11.21%.
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Look at FASB’s current technical agenda. a. Are any final standards set to be issued this quarter?b. Are any exposure drafts ("proposed ASUs" currently out for comment, or expected this quarter?
Current Technical Agenda of FASBFASB (Financial Accounting Standards Board) is a private sector entity that develops Generally Accepted Accounting Principles (GAAP) for the US. FASB's technical agenda for standard setting outlines the accounting issues that require standards development.
FASB does not have any final standards set to be issued this quarter. The only project that is expected to be completed this quarter is the insurance contracts project, which is currently at the final stages of the standard-setting process. The proposed ASU was issued in 2013, and FASB has been working on redeliberations since then. The final standard is expected to be issued in Q2 2021.
FASB currently has three exposure drafts ("proposed ASUs") out for comment. These exposure drafts are: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and Pensions—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. FASB has not announced any exposure drafts that are expected to be issued this quarter.
FASB's current technical agenda lists four priority projects: Leases, Financial Instruments, Insurance Contracts, and Disclosure Framework. FASB does not have any final standards set to be issued this quarter. However, FASB is expected to issue a final standard on the insurance contracts project in Q2 2021. FASB currently has three exposure drafts out for comment, but it has not announced any exposure drafts that are expected to be issued this quarter.
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discuss to what extent online courses can replace traditional
classroom teaching.
The online course system has been gaining popularity and relevance over the years and has become a new model of education. The question of whether online courses can replace traditional classroom teaching has been a subject of numerous debates. In my opinion, I believe online courses can replace traditional classroom teaching, but to some extent, considering the following points.
Additionally, online courses are cheaper compared to traditional classroom teaching. Traditional classroom teaching involves a high cost of acquiring books, transport, and accommodation. Online courses, on the other hand, are relatively cheaper and offer learners the chance to learn without having to travel, thus reducing transport and accommodation costs.
In conclusion, online courses can replace traditional classroom teaching, but to some extent. Online courses offer a flexible, cheaper, and interactive learning experience, which is lacking in traditional classroom teaching. Nonetheless, traditional classroom teaching still has a place in education since it offers practical and hands-on learning, which online courses are yet to replace.
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if a buyer's willingness to pay for an item is $10, and the buyer purchases the item for $8, what is the buyer's economic surplus?
The buyer's economic surplus is $2, which is the difference between the buyer's willingness to pay ($10) and the purchase price ($8).
The buyer's economic surplus is a concept that measures the benefit a buyer receives from purchasing an item. It is determined by calculating the difference between the buyer's willingness to pay for the item and the actual price paid. In this scenario, the buyer's willingness to pay is stated as $10, while the purchase price is $8.
By subtracting the purchase price from the willingness to pay, we find that the buyer's economic surplus is $2. This indicates that the buyer has gained an additional $2 in value by purchasing the item at a price lower than their maximum willingness to pay. The economic surplus represents the buyer's perceived gain and can be seen as a measure of the transaction's efficiency and mutual benefit.
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What is the yield to maturity for a corporate bond maturing in 20 years, that has a coupon rate of 8% and currently trading at a price of $1,153.01? O 6.48% O 3.31% O 6.54% O 6.61% O 6.81%
The yield to maturity for a corporate bond maturing in 20 years, that has a coupon rate of 8% and currently trading at a price of $1,153.01 is 6.54% (Option C).
The yield to maturity is the return rate an investor earns on a bond, assuming that the bond is held until maturity, and all interest payments are reinvested at the same rate. It is therefore important to calculate it accurately to ensure that an investor can make an informed investment decision.For a corporate bond that has a coupon rate of 8% and currently trading at a price of $1,153.01 and maturing in 20 years, the yield to maturity is 6.54%.
Given:Price of the bond (P) = $1,153.01
Coupon rate (C) = 8% = 0.08
Face value (F) = $1000
Time to maturity (n) = 20 years
Formula for calculating yield to maturity:
Y =[tex]{(F - P) / n} + (C + {(F + P) / 2}) / {(F + P) / 2)}[/tex]
Where,Y = Yield to maturity
C = Coupon rate
P = Price of the bond
F = Face value of the bond
n = Time to maturity
Substituting the given values in the formula, we get:
Y =[tex]{(1000 - 1153.01) / 20} + (0.08 + {(1000 + 1153.01) / 2}) / {(1000 + 1153.01) / 2)}Y[/tex]
= 81.495 / 1076.505Y
= 0.075635Y
= 7.5635%
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Question 4
1 pts
In 2019 the total amount of currency in circulation was C = $1,745. 10 billion. Demand deposits in the U. S. Banking system was about $1,524. 80 billion. The total amount of bank reserves equaled R = $1,621. 6 billion. The required reserve ratio at the time was rr = 10 percent.
First, let's calculate the following:
Currency-Deposit Ratio, c =
number with two decimals. )
Excess Reserve - Deposit Ratio, er =
as a number with two decimals. )
Money multiplier, m =
M1 Money Supply, M1 =
(Do not write this as a percentage, write it as a
(Do not write this as a percentage, write it
Billion dollars
In March 2020, the Fed reduced the required reserve ratio to zero (no reserve requirements). This could be a temporary thing. We will see. Suppose that immediately after the Fed reduces rr to zero, all the required reserves become excess (because banks do not have enough time to lend them out). Now, calculate the same things for this case.
Currency-Deposit Ratio, c =
number with two decimals. )
Excess Reserve - Deposit Ratio, er =
as a number with two decimals. )
Money multiplier, m =
(Do not write this as a percentage, write it as a
(Do not write this as a percentage, write it
M1 Money Supply, M1 =
Billion dollars
For the given scenario in 2019, the calculations are as follows:
Currency-Deposit Ratio (c) = 0.114 (rounded to two decimal places)
Excess Reserve-Deposit Ratio (er) = 0.120 (rounded to two decimal places)
Money multiplier (m) = 2.288 (rounded to two decimal places)
M1 Money Supply (M1) = $3,996.10 billion
After the required reserve ratio (rr) is reduced to zero, the calculations are as follows:
Currency-Deposit Ratio (c) = 1.144 (rounded to two decimal places)
Excess Reserve-Deposit Ratio (er) = 0 (as there are no required reserves)
Money multiplier (m) = 1 (as there are no reserve requirements)
M1 Money Supply (M1) = $1,524.80 billion (same as the demand deposits)
Currency-Deposit Ratio (c) is calculated by dividing the total currency in circulation (C) by the demand deposits (D). In 2019, c = 1,745.10 / 1,524.80 = 0.114.
Excess Reserve-Deposit Ratio (er) is calculated by subtracting the required reserves (R) from the total reserves (TR) and dividing it by the demand deposits (D). In 2019, er = (1,621.60 - 0.10 * 1,524.80) / 1,524.80 = 0.120.
The money multiplier (m) represents the ratio of the change in the money supply (ΔM1) to the change in reserves (ΔR). In 2019, m = ΔM1 / ΔR = (1,745.10 - 1,524.80) / (1,621.60 - 0.10 * 1,524.80) = 2.288.
M1 Money Supply (M1) is the sum of currency in circulation (C) and demand deposits (D). In 2019, M1 = C + D = 1,745.10 + 1,524.80 = $3,996.10 billion.
After the required reserve ratio is reduced to zero, banks do not have required reserves, so the excess reserve-deposit ratio (er) becomes zero. The money multiplier (m) also becomes 1 because there are no reserve requirements. The M1 Money Supply (M1) remains the same as the demand deposits, which is $1,524.80 billion.
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Structured and semi-structured interviews were developed to address what main problem? 1. Clinicians and researchers had tremendous difficulty in making consistent and accurate diagnoses of mental disorders with unstructured clinical interviews 2. The DSM used during development of structured interviews was not field trialed and resulted in disorders with weak validity 3. Insurance companies did not cover visits with diagnoses resulting from a structured interview 4. None of the above
Structured and semi-structured interviews were primarily developed to address the main problem of clinicians and researchers having tremendous difficulty in making consistent and accurate diagnoses of mental disorders with unstructured clinical interviews option (1).
Unstructured clinical interviews lacked standardized procedures, leading to variability in the way questions were asked and information was gathered. This lack of structure made it challenging to compare and analyze data across different interviews and clinicians, resulting in inconsistent diagnoses and decreased diagnostic reliability.
Structured interviews were designed to overcome this problem by providing a standardized set of questions and a systematic approach for gathering information. These interviews typically include a predetermined set of questions with specific response options, ensuring consistent data collection across different interviewers and settings. By using a structured format, clinicians and researchers can obtain more reliable and valid diagnostic information, leading to improved consistency in diagnosing mental disorders.
The other options mentioned in the question are not the main problems that structured and semi-structured interviews were developed to address. While the DSM's field trialing and insurance coverage are relevant considerations, they are not the primary reasons for the development of structured interviews.
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Discuss results-based monitoring versus traditional monitoring. [ 20 Marks] NOTE: well paragraphing and clear formatting
Monitoring is a crucial aspect of any project's progress and implementation. There are various types of monitoring that an organization can use, and each has its unique characteristics. This essay focuses on the differences between traditional monitoring and results-based monitoring.
Traditional monitoring is considered reactive, whereas results-based monitoring is proactive. In traditional monitoring, the focus is more on the outputs and activities. This means that the results are not given much attention, as long as the activities and outputs are within the set parameters. Results-based monitoring, on the other hand, is more outcome-based, and the focus is on the results, not just the activities.
Another difference between the two is the level of evaluation. Traditional monitoring assesses the project's activities, outputs, and outcomes, while results-based monitoring measures the results of a project. In traditional monitoring, the focus is on the performance of the project, while results-based monitoring emphasizes the achievements of the project.
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Discuss the relationship that exists amongst the three short-run
total cost curves.
Motivate your answer with the aid of a diagram?
The three short-run total cost curves are the total fixed cost (TFC) curve, the total variable cost (TVC) curve, and the total cost (TC) curve. The relationship among these curves can be summarized as follows:
In the short run, the total fixed cost (TFC) curve is a horizontal line because fixed costs do not change with the level of output. It represents the cost incurred by the firm that remains constant regardless of the level of production.
The total variable cost (TVC) curve slopes upward from left to right, indicating that variable costs increase as the level of output increases. This is because variable costs, such as raw materials, labor, and utilities, vary with the quantity produced.
The total cost (TC) curve is derived by adding the total fixed cost (TFC) and total variable cost (TVC) curves together. It starts at the same point as the TFC curve and then increases at a steeper rate as the TVC curve is added to it.
The relationship among these curves shows that as output increases, both TVC and TC increase. TFC remains constant throughout. This indicates that in the short run, as the firm produces more units, it incurs higher variable costs, which leads to an increase in total costs. Understanding these cost relationships is essential for firms to make informed decisions regarding production levels, pricing, and profitability.
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ABF Coro. has a profit margin of 4 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and the debt-equity ratio is .54. What is the sustainable rate of growth?
A. 2.33 percent
B. 4.10 percent
C. 2.73 percent
D. 3.54 percent
E. 4.00 percent
The sustainable rate of growth for ABF Coro. is approximately 1.38%.
None of the provided answer options match the calculated sustainable rate of growth.
The sustainable rate of growth can be calculated using the formula: Sustainable Rate of Growth = Profit Margin x Retention Ratio x Asset Turnover x Financial Leverage.
Given that the profit margin is 4% and the dividend payout ratio is 40%, the retention ratio (1 - dividend payout ratio) is 60%.
The capital intensity is 1.08, which represents the asset turnover ratio.
The debt-equity ratio is 0.54, which represents the financial leverage ratio.
Now, let's calculate the sustainable rate of growth:
Sustainable Rate of Growth = 0.04 (profit margin) x 0.60 (retention ratio) x 1.08 (asset turnover) x 0.54 (financial leverage)
Sustainable Rate of Growth = 0.013824 or 1.38%
Therefore, the sustainable rate of growth for ABF Coro. is approximately 1.38%.
None of the provided answer options match the calculated sustainable rate of growth.
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Assessment 1: How can you search for your expected job
effectively?
Assessment 2: Choose a topic and submit a short research paper
(4 pages for maximum)
Assessment 1: How can you search for your expected job effectively? Here are some ways that can help you to search for your expected job effectively: Start by researching about the companies you are interested in, you should check their website, LinkedIn profile, social media accounts, and other relevant sources of information.
This will give you an idea of their work culture, job vacancies, and job descriptions. Update your resume and include all relevant skills, experiences, and achievements that are related to the job you are applying for. Also, take advantage of job search engines and job portals, and make use of relevant keywords when searching for a job. Check local job fairs and attend events to make new connections and meet recruiters and hiring managers.
Assessment 2: Choose a topic and submit a short research paper (4 pages for maximum)When selecting a topic for a research paper, it is important to choose a subject that is interesting, relevant, and has enough information available to complete the project. Here are some steps that can help you choose a topic for your research paper:
Step 1: Brainstorm ideas and write down anything that comes to mind that interests you.
Step 2: Review your list and cross out any topics that you are not passionate about or do not have enough information on.
Step 3: Narrow down your list to your top three choices.
Step 4: Research each topic to see if there is enough information available.
Step 5: Once you have selected a topic, create a thesis statement that will guide your research and writing.
A 4-page research paper would typically include an introduction, background information, a thesis statement, several body paragraphs, a conclusion, and a list of references. It is important to properly cite any sources that you use in your research paper and to proofread your work for errors. A 4-page research paper would contain approximately 800 words.
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1. Describe three alternatives Phillip Veldhuis should consider if he continues to support the food banks. Describe the pros and cons of each alternative.
2. Based on your alternatives, what would you recommend Phillip Veldhuis do? Explain your answer. Assess the risks associated with your recommendation and complete an implementation plan for your recommendation.
1. Alternatives Phillip Veldhuis can consider:Phillip Veldhuis is an advocate for food banks, but there are alternative ways he can support the cause. Some of these alternatives include:Starting his food bank: Phillip Veldhuis could start his food bank.
This would give him more control over the running of the food bank and the food it distributes. Pros include being able to decide which communities to support and the quantity of food to distribute. Cons include startup costs and the need to obtain donations.Using social media: Phillip Veldhuis can leverage social media to raise awareness of food banks and encourage donations.
Pros include the ability to reach a large audience and low costs. Cons include the need to constantly update social media accounts and reach out to donors.Hosting fundraisers: Phillip Veldhuis can organize fundraisers to raise funds for food banks. Pros include the ability to raise large amounts of money, which can be used to purchase food for distribution.
Cons include the need to invest time and resources in organizing the event.2. Recommendations for Phillip Veldhuis:Based on the alternatives above, I would recommend that Phillip Veldhuis host fundraisers. This is because it can generate significant funds for the food bank. To mitigate the risks associated with this recommendation, Phillip should consider the following:Risk assessment: Phillip should conduct a risk assessment to identify possible risks associated with hosting fundraisers.
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Answer all the exercise questions below.
Question 1
Suppose the jeans industry is an oligopoly and each firm believes its rivals will not follow its price increases but will follow its price cuts. Briefly explain the characteristics of the jean industry in this market.
Question 2
Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company’s profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price:
Does either player in this game have a dominant strategy?
Big Brew threatens Little Kona by saying, "If you enter, we’re going to set a low price, so you had better stay out." Do you think Little Kona should believe the threat? Why or why not?
Question 3 (Topic 5, 6, 7 and 8)
Determine the market structure for the following cases and explain your reasoning:
The place where you live is like many other places, you and your friends have many choices about where to go to get a haircut. The price you pay for a basic haircut probably ranges from a few dollars at a discount establishment to many dollars at an upscale salon.
The four largest breakfast cereal companies (Kellogg, General Mills, Post, and Quaker) were producing over 86 percent of the total amount of breakfast cereals in the United States. These cereal producers spend a lot on advertising and use advertising as a way to compete with one another.
Beginning in the 1930s and throughout most of the 20th century, the De Beers company, based in Switzerland and South Africa, controlled most of the world’s diamond supply. Control of the supply of diamonds enabled De Beers to restrict the number of diamonds offered for sale and sell them at higher prices than would exist under competition.
Question 1:
Oligopoly market is a market structure in which a small number of interdependent firms compete against each other. The market structure of the jeans industry is an oligopoly because of the following characteristics:
The jeans industry consists of a few large firms that dominate the market.
The firms produce a homogeneous product, jeans.
The industry is a barrier to entry as it is very difficult for new firms to enter the market due to economies of scale, brand recognition, and advertising.
The firms in this industry engage in strategic pricing, where each firm believes its rivals will not follow its price increases but will follow its price cuts. In this way, the firms try to capture the largest market share by manipulating prices to increase their profits.
Question 2:
Neither player in this game has a dominant strategy. A dominant strategy is one that produces the highest payoff for a player, regardless of what the other player does. Neither Big Brew nor Little Kona has a dominant strategy. Both firms will have to consider their actions based on the actions of their competitor. Big Brew's threat to set a low price if Little Kona enters may or may not be credible. Little Kona should consider the threat and weigh the potential profits it could earn if it enters the market against the potential losses it could suffer if Big Brew does follow through on its threat.
Question 3:
Case 1: The market structure for this case is monopolistic competition. This is because there are many firms competing in the industry, selling similar but not identical products. The price of a basic haircut can vary from a few dollars at a discount establishment to many dollars at an upscale salon.
Case 2: The market structure for this case is an oligopoly. This is because the four largest breakfast cereal companies (Kellogg, General Mills, Post, and Quaker) dominate the market, accounting for over 86% of the total amount of breakfast cereals in the United States. The firms use advertising as a way to compete with one another.
Case 3: The market structure for this case is a monopoly. This is because, throughout most of the 20th century, the De Beers company controlled most of the world’s diamond supply. This enabled De Beers to restrict the number of diamonds offered for sale and sell them at higher prices than would exist under competition.
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Jester Joker's Toys has just paid a dividend of $1.60. Dividend projections indicate that dividends are expected to grow by 10% p.a. in the first year, 20% p.a. during the second year, and 5% p.a. from the third year onwards. Given this, and that the required rate of return on equity of 5%p a. compounded quarterly, what is the theoretical price of Jester Joker's Toys stock?
The theoretical price of Jester Joker's Toys stock is $27.28.
To calculate the theoretical price, we can use the dividend discount model (DDM) formula.
First, we need to calculate the present value of each dividend payment.
In the first year, the dividend is $1.60. Since the dividend is expected to grow by 10% per year, the present value of the first year's dividend is $1.60 / (1 + 0.05/4) = $1.5238.
In the second year, the dividend is expected to grow by 20% from the first year's dividend, so the dividend in the second year is $1.5238 * (1 + 0.20) = $1.8285. The present value of the second year's dividend is $1.8285 / (1 + 0.05/4)^2 = $1.7132.
From the third year onwards, the dividend is expected to grow by 5% per year. Using the formula for the present value of a growing perpetuity, we can calculate the present value of these dividends. The dividend in the third year is $1.7132 * (1 + 0.05) = $1.7988, and the present value of the third year's dividend is $1.7988 / (0.05/4) = $143.90.
Finally, we can calculate the present value of all the dividends by summing the present values of each dividend payment. The present value of all the dividends is $1.5238 + $1.7132 + $143.90 = $146.14.
Therefore, the theoretical price of Jester Joker's Toys stock is $146.14 / (1 + 0.05/4)^2 = $27.28.
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John, age 35, considers himself to be an average risk investor. He has a modest investment portfolio designated for his retirement. Generally, he would select which of the following stocks for his investment portfolio? A) He would prefer JEM stock with low risk and high positive skewness. B) He would prefer ABC stock with high risk and high positive skewness. C) He would prefer XYZ stock with low risk and low positive skewness. D) He would prefer GHI stock with high risk and low positive skewness.
Considering John's preference for an average risk profile and a modest retirement portfolio, option C) XYZ stock with low risk and low positive skewness would likely be his preferred choice. It provides relatively lower risk while still offering a balanced return distribution.
As John considers himself an average risk investor with a modest investment portfolio designated for his retirement, he would typically prefer stocks with a balanced risk-return profile.
A) JEM stock with low risk and high positive skewness: Although low risk is desirable, high positive skewness indicates the potential for significant positive returns, which may come with higher volatility or tail risk. This may not align with John's preference for a balanced risk profile.
B) ABC stock with high risk and high positive skewness: High risk may be outside of John's desired risk level for his retirement portfolio, even if it comes with high positive skewness.
C) XYZ stock with low risk and low positive skewness: This option aligns more closely with John's preference for low risk. However, low positive skewness suggests a more balanced return distribution without significant upside potential. It may be suitable for an average risk investor with a modest portfolio.
D) GHI stock with high risk and low positive skewness: High risk may not be in line with John's risk preference, and low positive skewness indicates a more balanced return distribution without significant upside potential.
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Crane Crafts Corp. management is evaluating two independent capital projects that will each cost the company $290,000. The two projects will provide the following cash flows:YEAR PROJECT A PROJECT B.1 $78,750 $34,500,2 $95,450 $98,300,3 $36,235 $178,900,4 $147,655 $76,110 What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.)A: B: Which project will be chosen if the company’s payback criterion is three years? What if the company accepts all projects as long as the payback period is less than five years?
Payback period refers to the amount of time taken for a project to recover its initial investment. For a project, this period is measured in years. Crane Crafts Corp. is looking at two capital projects that are independent and cost $290,000 each.
To compare the two projects, the company needs to consider the payback periods. The company can also determine whether the projects are acceptable based on the payback criterion of three years.If the payback criterion is three years, Project A will be chosen since its payback period is less than three years. Project B has a payback period of 3.23 years, which is more than three years.If the company accepts all projects as long as the payback period is less than five years, then both projects will be accepted. This is because the payback period for both projects is less than five years.
Crane Crafts Corp. management has been able to compare the two independent capital projects using the payback period. They have been able to determine that Project A has a payback period of 2.29 years while Project B has a payback period of 3.23 years. They have also determined that if the payback criterion is three years, Project A will be chosen. If the company accepts all projects as long as the payback period is less than five years, both projects will be accepted.
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A short hedge is initiated on the S\&P 500 at time t=1. The hedger buys an S\&P 500 ETF at this time and sells the E-mini S\&P 500 futures contract against it at this time. The trade is put on so the hedge is a "perfect hedge" if held until maturity. The S\&P 500 ETF price at time t=1 is $3,900 and the futures price at time t=1 is $3,950. The hedge is later closed by the trader at time t=2 when the S\&P 500 ETF is at a spot price of $3,700 and the futures price of the S&P500 is at $3,650. What profit or loss on this closed out hedge occurs due to basis risk incurred by the hedger over the period? $50 profit $50 loss $100 profit $100 loss $150 profit $150 loss $0
Basis risk is the risk that the value of a future, such as a commodity, security, or currency, will change unpredictably relative to the value of the asset it is supposed to safeguard.
Let's now evaluate the profitability of a short hedge initiated on the S&P 500 at time t=1, with a perfect hedge until maturity, and later closed by the trader at time t=2, with a spot price of $3,700 and the futures price of the S&P500 at $3,650.The hedger buys an S&P 500 ETF at $3,900 and sells the E-mini S&P 500 futures contract against it at $3,950 at time t=1. The initial value of the short hedge position is thus $50.
Now, at time t=2, the value of the S&P 500 ETF drops to $3,700, but the value of the E-mini S&P 500 futures contract drops even further to $3,650. As a result, the perfect hedge fails to perform due to basis risk.
As a result, the hedger's total loss is $100, since the E-mini S&P 500 futures contract loses $300 ($3950 - $3650), while the S&P 500 ETF loses $200 ($3900 - $3700).Therefore, the total loss on this closed-out hedge is due to basis risk and is $100. The correct option is: $100 loss.
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1.1 WHY STUDY ECONOMICS LEARNING OBJECTIVE: Identify three key reasons to study economics. Think of an example from your life in which understanding opportunity costs or the principle of efficient markets could make a difference in your decision making. 1.1 One of the scarce resources that constrain our behavior is time. Each of us has only 24 hours in a day. How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer. 1.2 Every month, Frank pays an $80 membership fee at a fit- ness center so he can avail himself of the unlimited use of its facilities. On average, he goes to the center 10 times a month. What is the average cost of each trip he makes to the center? What is the marginal cost of an additional work-out session?
Some of the reasons to study economics are given below.
What are the reasons?Understanding economic principles aids people in comprehending news reports, making informed voting decisions, and comprehending both private and public decisions.
As a result, studying economics aids in the development of analytical abilities and critical thinking, as well as in the acquisition of tools and methods for analyzing data. Knowing economics can aid in making informed decisions that can have a significant impact on your life, including job choices, investing decisions, and understanding how the economy operates.An example from my life in which understanding opportunity costs can make a difference in decision-making would be deciding whether to go on a vacation or save money for a new car. If I choose to go on vacation, the opportunity cost would be the money that could have been saved for a car, whereas if I choose to save for a car, the opportunity cost would be not going on a vacation.1.2 Average cost of each trip he makes to the center is $8.
Marginal cost of an additional workout session would be zero since he has already paid $80 for unlimited use of the fitness center’s facilities.
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