Hr corporation has a beta of 2.0, while lr corporation's beta is 0.5. the risk-free rate is 10 percent, and the required rate of return on an average stock is 15 percent. now the risk-free rate falls by 3 percentage points, the required return on the market falls to 11 percent, and the betas remain constant. when all of these changes are made, what will be the difference in the required returns on hr's and lr's stocks?

Gemini inc.'s optimal cash transfer amount, using the baumol model, is $60,000. the firm's fixed cost per cash transfer of marketable securities to cash is $180, and the total cash needed for transactions annually is $960,000. on what opportunity cost of holding cash was this analysis based?

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value