because cash is the financial asset and it becomes is a liability of the government upon the time you found the cash. So‚ the taxpayers will have to make up for the government liability. 2. The average rate of return on investment in large stocks has outpaced that on investments in T-Bills by about 8% since 1926 in US. Why‚ then‚ does anyone invest in T-Bills? Answer: This is because T-bill is regarded as an almost risk free asset as it is backed by the government. Therefore‚ it has lowest volatility
Premium Investment Interest Rate of return
Michelle_Perez_ADCO5190_CH1_P08 4/2/2003 Chapter 1. Ch 01 P08 Build a Model a. Suppose you are considering two possible investment opportunities‚ a 12-year Treasury bond and a 7-year‚ A-rated corporate bond. The current real risk-free rate is 4%. Inflation is expected to be 2% for the next two years‚ 3% for the following four years‚ and 4% thereafter. The maturity risk premium is estimated by this formula:MRP = 0.1% ( t-1) %. The liquidity premium for the corporate bond is estimated to
Premium Bond Investment Risk aversion
Investment Banking in 2008 (A): Rise and Fall of the Bear 1. What role did Bear’s culture play in its positioning vis-à-vis its competitors‚ and what role might that culture have played in its demise? Bear Stearns played a risky role with the promise of high returns. Bear was participating in the LTCM and created a bubble. Bear’s competitors recognized and hedged against risk by participating in the buyout while Bear Stearns ignored the bullish market. Other banks hired both externally as well
Premium Investment Federal Reserve System Subprime mortgage crisis
The Investment Detective Case We can use normal investment to calculate the data‚ but we also can do it as reinvestment to invest every project for the same years. For every question‚ I will give answers for both normal investment and reinvestment. 1. We can rank the projects simply by the cash flow data. Normal investment: Rank 1 2 3 4 5 6 7 8 Project number 3 8 6 1 5 7 4 2 Cash flow 8000 2150 200 1310 2200 560 1561 165 Reinvestment: Rank 1 2 3 4 5 6 7 8
Premium Net present value Investment
Legality of object The main issue in this problem is whether there is an ’agreement’ - offer and acceptance However‚ on the first element of intention to create legal relations‚ it is clearly a business/commercial relationship between Tallula Investments Ltd and Italian Cuisine Ltd and therefore the presumption is that the parties intend to enter into legal relations. There is no evidence to rebut this presumption (see Jones v Vernon Pools). The next issue to be dealt with is the ’offer’. Has
Premium Contract Invitation to treat Carlill v Carbolic Smoke Ball Company
Single Investment. Expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome. The most highest expected return is from Yong Tai Berhad. Standard deviation is a quantity expressing by how much the members of a group differ from the mean value for the group. The lowest standard deviation among this three company is from Hiap Teck Venture. Coefficient of variation represents the ratio of the standard deviation to the mean‚ and
Premium Arithmetic mean Standard deviation Investment
Brief History of Cable Television: The traditional mass media had a confined sphere in countries where it initially grew‚ functioning strictly in line with the values‚ norms‚ traditions and basic requirements of the local populace. But‚ the inventions of new technologies like satellite communication‚ cable television and internet has helped it across national boundaries and addresses the worldwide audience. These boosting inventions have‚ in fact made the world a global village by transforming media
Premium Cable television Satellite television Television network
Using the library‚ course materials‚ and other Web resources‚ find some examples of international companies in the United States that demonstrate a global management approach to their operations. Provide some specific examples of practices or strategies that demonstrate this approach. Then answer the following questions: * Why has it become so important for companies to become competitive in the global business environment? * What advancements in operations management in other countries
Premium Management Ford Motor Company Business
Informal Letter Dear Mimi‚ How are you my dear sister? I hope you are fine. Don’t worry about me; I am very fine. I am now a very strong young man you know. How are those wonderful brothers of mine? Pass them my greetings. I received you letter. Thanks a million for writing. The brothers and sisters in my congregation are fine. I am only sorry to heat that Br. Banda is still sick. I hope he will recover soon. My journey back here was fine‚ though it was quite a long one. I wanted to travel
Premium High school Sibling Sergeant
Samantha McNamara 1818 Red River Basin In 1818 America and Great Britain edited a treaty that was made in 1812. The treaty made in 1812‚ Treaty of Ghent‚ had settled the war in 1812. This treaty had to do with the territory of present day Minnesota and North Dakota. When they edited the treaty in 1814 it was decided that the United States and Britain would share the Oregon Territory (The). This change lasted until 1846. The Oregon territory became the northern border of the famous Louisiana
Premium United States Mexico New Mexico