What is disintermediation and when is it likely to occur

Assignment Help Finance Basics

Reference no: EM131209505

What is disintermediation? When is it likely to occur? What factors can reduce it?

If I take my funds out of my credit union and put them in a money market mutual fund, have I disintermediated? Why or why not?

Reference no: EM131209505

Questions Cloud

Mitigate various risks for investors : Assess how index mutual funds can mitigate various risks for investors. Include a discussion how the capital asset pricing model affects index fund risk.

What is the firms equity beta : A firms assets have a beta of 1.25 and the debt beta equals 0.0. Assuming the firms capital structure is 60% equity and 40% debt and there are no taxes, what is the firms equity beta?

Locate the points where monopoly welfare loss occurs : Using figure 11.3, locate the points where monopoly welfare loss (in units of good 2) occurs in the diagram. Show that this increases the higher the monopoly price is relative to the competitive price.

Choosing the right cost of capital : The risk-free rate equals 7%, and the expected risk premium on the market portfolio equals 7%. A particular company has bonds outstanding that offer investors a yield to maturity of 7.5%.

What is disintermediation and when is it likely to occur : If I take my funds out of my credit union and put them in a money market mutual fund, have I disintermediated? Why or why not?

Value for a middle-income investor : For a high-income investor in the 40% tax bracket, compute the taxable equivalent yield for amuni bond yielding 5%. Calculate this same value for a middle-income investor in the 30% tax bracket.

Prepare a vertical analysis of the income statement data : Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.

Show that the profit-maximizing strategy consists of bidding : Show that if you submit a bid of B, the probability that you win the contest is the probability that your bid B will exceed your rival's bid, and that this probability of winning is B/250.

Prepare a loan amoritization schedule for loan : Determine the annual payment on a $15000 loan that is to be amoritized over a four year period and carries a 10 percent interest rate. Prepare a loan amoritization schedule for this loan

User Account

All Pages