Q: Mike Williams, a well-known real estate appraiser, just paid $390,000 for an insurance policy that w...
A: Perpetuity amount= $390,000 Cash Flow Amount= $14,600 per year Rate of return=?
Q: which one is correct please confirm? Q20: Which investment would show the highest rate of return: 1)...
A: There are two ways of investing one interest on principles and discount on principal
Q: A company that manufactures clear PVC pipe is investigating two production options with the followin...
A: Annual worth analysis refers to the evaluation of various investment alternatives by determining the...
Q: ★What singlê investment made today, earning %10 annual interest, will be worth $10,000 at the end o...
A: Assuming compounding of interest take place yearly. We need to use this formula ...
Q: 6. Febie invested in a GIC (Guaranteed Investment Certificate) that paid 3.25% simple interest. In 3...
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want...
Q: 3. Trace the implications of a government budget surplus on the following:a. national savingb. inter...
A: a) A budget surplus occurs when government tax receipts are greater than government spending. It mea...
Q: An inventor has designed a new type of cordless power snow shovel that's light weight and charges on...
A: When you are reserving the rights of any ideas or process of any invention or art, it would be consi...
Q: which one is correct answer please confirm? Q23: The real rate of interest is expected to be 3%, ...
A: Required return on 1-year U.S. Treasury security is the sum of expected real rate of return and expe...
Q: . Consider a failing bank. How much is a deposit of$290,000 worth to the depositor. if the FDIC uses...
A: Under the pay off method,Large deposits pay more then $0.90 per dollarSo, $290000 is worth better th...
Q: On February 2, Phillips induced Miller to purchase from her fifty shares of stock in the XYZ Corpora...
A: This is the case of Fraud in the Inducement. Miller may be successful in filing lawsuit against Mrs....
Q: Help me fast so that I will give Upvote.
A: given, total investment = $445000 interest rate 1=10% interest rate 2=12% time = 1 year investment i...
Q: The Ford Foundation expects to award $15 million in grants to public high schools to develop new way...
A: B/C ratio(Benefit-Cost Ratio) is used to do a cost-benefit analysis. The relative costs and benefits...
Q: A Macrohard Corp. bond carries an 10% coupon, paid annually and has 10 years to maturity. The par v...
A: Using Excel PV function to calculate price of the bond
Q: 1. Robert is expected to settle a loan on January 1st, 2018 by paying $8,000. What amount should she...
A: The present value is the value of the sum received at time 0 or the current period. It is the value ...
Q: MAIN PROJECT Texas University is considering investing in an online book ordering and information se...
A: Project investment is analysis by method of capital budgeting. Capital budgeting techniques are used...
Q: Emaar Builders need to acquire the use of a crane for construction business, and are considering buy...
A: Lease Proposal : Annual Lease payment = Rs 550,000 Less : Tax @ 30 % = Rs 165,000 Net Annual Cost o...
Q: Explain why it might still be more efficient on a risk/reward basis to invest internationally rather...
A: Investment means engaging the funds to generate the profits in the future. It is very necessary to e...
Q: which one is correct please answer? Q7: An option allowing the holder to buy an asset in the future ...
A: Introduction: Options can be defined as financial contracts in which the buyer is provided with an r...
Q: Compute the amount of raw materials used during August if Rs. 75,000 of raw materials were purchased...
A: Given information: Opening raw materials cost is 5,000 Closing raw materials cost is 3,000 Purchases...
Q: april loaned her friend $750 to buy a guitar. he agreed to pay it back with 5% annual interest at th...
A: A concept that implies the future worth of the money is lower than its current value due to several ...
Q: Henderson's Hardware has an ROA of 15%, a 5% profit margin, and an ROE of 23%. What is its total ass...
A: The term return on assets is the measure of returns that are generated using the total assets of the...
Q: You are considering a four-year project to improve production efficiency of your press. Buying a new...
A: Frist you need to calculate deperciation on machine and tax saving on sale of sale. Depreciation rat...
Q: Garrett Industries turns over its inventory six times each year; it has an average collection period...
A: Cash conversion cycle =Days of inventory outstanding (DIO) + Days sales outstanding (DSO) - Days pay...
Q: The best way to break the 100,000 mile mark for your car is to schedule regular oil and filter chan...
A: Future value of the invested amount or cost savings is the total of compounded amount of investments...
Q: Q.Considering the following information, what is the net benefit if the borrower refinances the loan...
A: Loan refinance means, take the another loan for the payment of old loan. Before the refinancing, net...
Q: which one is correct please confirm? QUESTION 13 Computerized financial planning models may be ...
A: 1. Computerized financial planning models may be classified as any of the following EXCEPT optimisti...
Q: SkyPie is a mom and pop bakery in Detroit. It costs them $2.59 to make a single rhubarb pie. They se...
A: In this question it is not clear whether the cost has increased by 10% or the selling price.
Q: Nancy Billows promised to pay her son $600 quarterly for 4 years. If Nancy can invest her money at 8...
A: The provided information are: Annuity (A) = $600 Number of periods = 4(4) = 16 The rate of interest ...
Q: If you invest $7,000 at 12% compounded continuously, how much would it be worth in three years? (a) ...
A: Introduction: The amount which is invested today is referred to as present value. The amount that is...
Q: What is the yield to maturity on a simple loan for$1,500 that requires a repayment of $15,000 in fiv...
A: Individuals, corporates, and governments take loans to finance their needs. The interest rate on the...
Q: Microtech Corporation is expanding rapidly and it currently needs to retain all of its earnings henc...
A: According to Dividend discount model present value of stock is present value of dividend.
Q: Analyze the relationship of financial development and economic growth/development. In other words, d...
A: Introduction: Financial markets especially capital markets is a place where exchange of funds takes ...
Q: Andy has asked you to bankroll his proposed business painting houses in the summer. He plans to oper...
A: here in this question to calculate annual rate of return we have to calculate the IRR of the project...
Q: which one is correct please suggest? QUESTION 34 The effective rate of interest will always be ...
A: Effective interest rate is interest rate due to effect of compounding. Due to effect of compounding ...
Q: which one is correct answer please confirm? QUESTION 28 The business risk of a firm refers to t...
A: Risk means possible outcome from unexpected events. Definition or risk element is differ from person...
Q: A company purchased Machinery at a cost of Rs. 600000 having salvage value of Rs. 100000 and life is...
A: Cost of the machine at the end of year 3 Asset ₹ 6,00,000.00 Accumulated depreciation for 3 ye...
Q: Which one is correct answer please confirm? Q4: Using the "Rule of 72," about how long will it ta...
A: A method that helps to evaluate the time period required to double the investment at a specific inte...
Q: Mrs. Smith has a monthly payment of $230 for health insurance, a $500 deductible, an 80%/20% c insur...
A: Insurance is an agreement between Insurer and Insured where Insurer compensate Insured for any loss ...
Q: Which measures are known as rate-of-return analysis?
A: There’s a metric called Internal rate of return which is used in the analysis to determine rate of r...
Q: 1. Information on the Black PLC fixed income investment portfolio is the following (in EUR): Co...
A: Investments are generally made in combination by the investors. The various combination of securitie...
Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does...
A: (a) The income statement can also be called a “profit-and-loss statement" because it is a financial ...
Q: Please don't copy from other source and don't plagiarism.. Otherwise i will report
A: Answer 1. a: Following are the functions of the investment banks: IPO: IPO is a process where a pr...
Q: ( , !f your client did NOT add any monthly contributions to the Roth account, what will the initial ...
A: Present value is the sum of money that must be invested in order to achieve a specific future goal. ...
Q: A chain cafeteria business is in the process of forming a separate business unit thatprovides meals ...
A: Capital budgeting is a way to evaluate the profitability of the new projects or investment by using ...
Q: Three independent projects, each of which requires a RS 5 million investment are being considered fo...
A: 3 independent projects each one requires RS 5 million investment so the total investment required is...
Q: AMG Services offers to lend Scott Tucker $5,250 which he needs to repair his sports car. AMG’s loan...
A: This question is related to the repayment schedule. Here a loan of $ 5250 at the annual 14.60% compo...
Q: 4. Brenda, Ruben, Tomas, and Alvin were recently el ected as the new CSG officers (president, vice ...
A: In an organization there are different kinds of managerial work that are performed by defined person...
Q: The interest rate is 10%. Find the effective rate of interest if it is paid four times a year. 46.41...
A: Effective Interest Rate: The effective annual interest rate is the real return on an investment afte...
Q: The Tree Top Airline (TTA) is a small feeder-freight line started with very limited capital to ser...
A: The present value is the present worth of the amount that will be paid or received in the future.
Q: Summarize portfolio analysisand its use to evaluatemarketing performance
A: Portfolio analysis is a quantitative tool which aims to measure the profitability among all the comp...
The HFS Trustees have solicited input from three consultants concerning the risks and rewards of an allocation to international equities. Two of them strongly favor such action, while the third consultant commented as follows: “The risk reduction benefits of international investing have been significantly overstated. Recent studies relating to the cross-country correlation structure of equity returns during different market phases cast serious doubt on the ability of international investing to reduce risk, especially in situations when risk reduction is needed the most.”
a. Describe the behavior of cross-country equity return correlations to which the consultant is referring. Explain how that behavior may diminish the ability of international investing to reduce risk in the short run. Assume that the consultant’s assertion is correct.
b. Explain why it might still be more efficient on a risk/reward basis to invest internationally rather than only domestically in the long run.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Matilda has recently been appointed as an analyst within the Waltzing Investment Co. Part of her role is to advise fund managers on the fixed income portion of their portfolio. a. One of Matilda’s colleagues suggests that analyzing the bonds issued by foreign governments is more complex than for the bonds issued by domestic corporate bonds. The colleague states that this difficulty is a result of the intangible and non-quantitative elements involved in analyzing the foreign bonds. Discuss whether you agree with this argument.In one sense, international investing may be viewed as no more than a straight-forward generalisation of portfolio selection in a domestic market on the other hand, international investments pose problems not encountered in domestic markets. (a) Discuss the above statement in detail highlighting the similarities and differences between domestic and international investing. Identify the challenges and problems of international investing. (b) Outline and explain the advantages of international investing. (c) Outline and explain the disadvantages of international investing.Because capital flows were an important element in the currency crises, it has been advocated that emerging markets countries avoid the financial instability by restricting capital mobility. Assess the extent to which you agree with this statement.
- Which of the following does NOT refer to the ways of how a multinational company can reduce political risk? Taking a conservative approach to investment and adjusting NPV of the project by reducing expected cash flows or by increasing the cost of capital in accordance with existing trends. Purchasing insurance policy against political risks. Acquiring minor shares in foreign corporations. Creating a joint venture with local partners or a consortium with other multinational companies.Which of the following statements is CORRECT? a. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. b. Hedge funds have more in common with commercial banks than with any other type of financial institution. c. Hedge funds have more in common with investment banks than with any other type of financial institution. d. Hedge funds are legal in the United States, but they are not permitted to operate in Europe or Asia. e. The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.Which of the following statements is the MOST accurate? A) International trade in assets can make both parties to the trade better off by allowing them to reduce the riskiness of return by portfolio diversification. B) International trade in assets can make both parties to the trade worse off by allowing them to increase the riskiness of return by portfolio diversification. C) International trade in assets can make both parties to the trade worse off by allowing them to eliminate all risk by portfolio unification. D) International trade in assets can make both parties to the trade better off by allowing them to eliminate all risk by portfolio unification. do not plagiarise please thnku
- Moral hazard is a barrier to financing global growth because: OPTIONS: if investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms. firms sometimes have trouble determining whether they need funds or not. there is the possibility that the funds are used for riskier behavior than the lender agreed to. of the differences between financing using loans, portfolio investment and foreign direct investment.The board of a major bank is discussing their investment appraisal methodology as they have a new project under consideration. They have agreed that using the CAPM approach is sensible as they feel it likely that most of their shareholders have a well-diversified shareholding in the stock market as a whole. There has been some dispute about which risks constitutes specific risks in the bank and which risks are more systematic in nature partly driven by the nature of the bank's operations. Equally, no one seems quite sure what the required return derived from the CAPM formula actually represents. The finance director has produced the following data relating to the bank itself, the financial market and the new project it is considering: Data Required return on existing debt, 6.0% Cost of existing debt to the bank, 4.8% Return on short-dated gov secur's, 5.2% Return in the stock market (index), 12.8% Equity beta of the bank (levered), 1.35 Beta of the new project, 1.52 Asset beta of the…The board of a major bank is discussing their investment appraisal methodology as they have a new project under consideration. They have agreed that using the CAPM approach is sensible as they feel it likely that most of their shareholders have a well-diversified shareholding in the stock market as a whole. There has been some dispute about which risks constitutes specific risks in the bank and which risks are more systematic in nature partly driven by the nature of the bank’s operations. Equally, no one seems quite sure what the required return derived from the CAPM formula actually represents. The finance director has produced the following data relating to the bank itself, the financial market and the new project it is considering: Data Required return on existing debt, 6.0% Cost of existing debt to the bank, 4.8% Return on short-dated gov secur’s, 5.2% Return in the stock market (index), 12.8% Equity beta of the bank (levered), 1.35 Beta of the new project, 1.52 Asset beta of…
- Why do you think the Fed releases the results of the Federal Open Market Committee votes? multiple choice Releasing the voting results helps the Fed appear more transparent to the general public. There is no deliberate strategy behind releasing the voting results. Releasing the voting results helps to achieve the Fed's aim of confusing market participants about the stance of policy. Portfolio planning by company pensions plans is enhanced by the information helping maintain financial market stability.“The growth of international banking has been driven by a desire for increased access to capital, diversification of risk, and the expansion of financial services to a global market, but it has also led to increased risks and regulatory challenges.” State True or False and justify your answer as a short essay answer.The following comments were made at an Annual Conference of the Financial Executives Institute (FEI).There is an irreversible movement toward the harmonization of financial reporting throughout the world. The international capital markets require an end to:1. The confusion caused by international companies announcing different results depending on the set of accounting standards applied.2. Companies in some countries obtaining unfair commercial advantages from the use of particular national accounting standards.3. The complications in negotiating commercial arrangements for international joint ventures caused by different accounting requirements.4. The inefficiency of international companies having to understand and use a myriad of different accounting standards depending on the countries in which they operate and the countries in which they raise capital and debt. Executive talent is wasted on keeping up to date with numerous sets of accounting standards and the never-ending changes…
