Business, 24.06.2019 21:00 andreastyles1603
Assume that the united states invests heavily in government and corporate securities of country k. in addition, residents of country k invest heavily in the united states. approximately $10 million worth of investment transactions occurs between these two countries each year. the total dollar value of trade transactions per year is about $8 billion. this information is expected to also hold in the future. because your firm exports goods to country k, your job as international cash manager requires you to forecast the value of country k’s currency (the “krank”) with respect to the dollar. explain how each of the following conditions will affect the value of the krank, holding other things equal. then, aggregate all of these impacts to develop an overall forecast of the krank’s movement against the dollar. 1. country k’s inflation has suddenly increased substantially, while u. s. inflation remains low. 2. country k’s interest rates have increased substantially, while u. s. interest rates remain low. investors of both countries are attracted to high interest rates. 3. the u. s. income level decreased substantially, while country k’s income level has remained unchanged. 4. the u. s. is expected to impose a small tariff on goods imported from country k. 5. combine all expected impacts to develop an overall forecast.
Answers: 2
Business, 22.06.2019 05:10, russboys3
The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?
Answers: 1
Business, 22.06.2019 10:20, alayciaruffin076
What two things do you consider when evaluating the time value of money
Answers: 1
Business, 22.06.2019 22:40, jakails3073
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 2
Assume that the united states invests heavily in government and corporate securities of country k. i...
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