Explain the role that forward rates play in making investment decisions
What will be an ideal response?
Although a forward rate may never be realized in practice, it is still important for investors because it tells them about their expectations relative to what the market consensus expects. This allows them to make decisions based upon the market expects. For example, forward rates indicate how an investor's expectations must differ from the market's consensus in order to make the correct decision. Some investors may not speak about forward rates as being market consensus rates. Instead, they refer to forward rates as being hedgeable rates. For example, by buying the one-year security, the investor can hedge the six-month rate six months from now.
21."Forward rates are poor predictors of the actual future rates that are realized. Consequently, they are of little value to an investor." Explain why you agree or disagree with this statement.
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Fill in the blank(s) with correct word
The compensation provided by the government for its exercise of the power of eminent domain is final and cannot be disputed further.
Answer the following statement true (T) or false (F)
Study of waiting-line models helps operations managers better understand:
A) service systems such as bank teller stations. B) maintenance activities that might repair broken machinery. C) shop-floor control activities. D) service systems such as amusement park rides. E) all of the above
Hutchcroft Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. MaterialsConversion?Cost per equivalent unit$24.30 $27.10 ?Equivalent units in ending work in process 630 225 ?? During the month, 6,200 units were completed and transferred from the Assembly Department to the next department. Required:Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method.
What will be an ideal response?