You are planning to buy a stock, the risk on which is dependent on two factors: (1) the change in the inflation rate over the last year and (2) the spread between ten-year Treasury bonds and three-month Treasury bills. Suppose the average risk-free interest rate is 3 percent. The beta coefficients of the stock associated with the change in inflation rate and the spread between ten-year Treasury bonds and three-month Treasury bills are -2 and 4 respectively. If you expect the inflation rate to rise 6 percentage point and you think the spread will be 8 percentage points. What is the expected return to this stock? Use the arbitrage-pricing theory.
A. 11 percent
B. 12 percent
C. 18 percent
D. 23 percent
Answer: D
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Answer the following statements true (T) or false (F)
1.When we interact with others, each manner of delivery suggests a different kind of relationship. 2.“Symmetrical escalation” often occurs when both parties in a relationship believe they are equal in all situations. 3.Cultural awareness is the ability to understand the role that cultural prescriptions play in shaping communication, 4.Because we, as a culture, have gotten past, gender issues, girls, and boys are no longer provided with different kinds of toys, such as dolls for girls and action figures for boys. 5.According to media guru Marshall McLuhan, the medium is both message and massage.
______ can be benefical to learn another’s role in an effort to see how others view them.
a. Interviews b. OD interventions c. Role play or dramatic exercises d. Surveys
A U.S. company makes a sale to a foreign customer receivable in 30 days in the customer's currency. The sale would be recorded by the U.S. company on the date:
A. Of sale using the current dollar value. B. Of sale using a 30-day average U.S. dollar value. C. When payment is received. D. Of sale using a projected estimate of the U.S. dollar value at payment date. E. Of sale using the foreign currency value.
Write a note on the two basic types of controls that are feasible in a computer-controlled production technology.
What will be an ideal response?