Hand gestures and posture can communicate a message
Indicate whether the statement is true or false
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Suppose a discount bond costs $5,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b:$5,000 $5,500 $6,000 $6,500 $7,000 Probability:0.1 0.2 0.3 0.2 0.2 ? a.Calculate the return (in percent) for each value of b. (Note: you may just calculate the total return and not worry about how this is split up between current yield and capital-gains yield.) b.Calculate the expected return. c.Suppose an investor has a choice between buying this security or purchasing a different security that also costs $5,000 today, but pays off $5,500 with certainty in one year. How is an investor's choice of which security to purchase related to her degree of risk aversion?
What will be an ideal response?
Looking at events that have taken place and thinking about how they affect the business is
a. analyzing; b. recording; c. classifying, d. summarizing; e. reporting
Explain the concept of opportunity cost, giving at least one example from your life
What will be an ideal response?
If a purchasing division can acquire parts from outside suppliers at less than the selling division's incremental costs, it should do so, because this will enhance the company's overall profits
Indicate whether the statement is true or false