Business, 06.05.2020 07:30 LindaCat78
Suppose the interest rates on one-, five-, and ten-year US Treasury bonds are currently 3%, 6%, and 6%. respectively. Investor A chooses to hold only one-year bonds and investor B is inerrant with grad to holding five- and ten-year bonds. Which theories best explain the behavior of Investors A and B?
A. Both Investors A and B exhibit preferences that are consistent with expectations theory.
B. Investor A's preferences are best explained by the liquidity premium theory, while Investor B's preferences are more consistent with the segmented markets Theory
C. Investor A's preferences are best explained by the segmented markets theory, while Investor B's preferences are more consistent with the expectations theory.
D. Both Investors A and B exhibit preferences that are consistent with the segmented markets theory.
Answers: 2
Business, 22.06.2019 10:50
Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.
Answers: 2
Business, 22.06.2019 11:50
Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.
Answers: 2
Business, 22.06.2019 12:50
You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400
Answers: 3
Business, 22.06.2019 20:00
If a government accumulates chronic budget deficits over time, what's one possible result? a. a collective action problem b. a debt crisis c. regulatory capture d. an unfunded liability
Answers: 2
Suppose the interest rates on one-, five-, and ten-year US Treasury bonds are currently 3%, 6%, and...
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