What is the expected rate of change in the spot rate

Assignment Help Financial Management

Reference no: EM131564332

1. The regression relationship between fp(t) and s(t+1) is estimated as: Et[s(t+1)] = 1% – 0.2 × fp(t) If the forward premium is 1% what is the expected rate of change in the spot rate?

A) 0.2% B) 0.8% C) 1.2% D) 1.8%

2. Over the last year the nominal revenues of a firm increased from $1 million to $ 1.2 million. The consumer price index increased over the same year by 8%. The rate of increase in the real revenue was approximately _____.

A) 6% B) 10% C) 12% D) 14%

Reference no: EM131564332

Questions Cloud

What is its percentage after-tax cost of debt : what is its percentage after-tax cost of debt?

Construct mathematical model for the length as a function : Plot weight (on vertical axis) vs. age (on horizontal axis). Then use technology to find the best-fit quadratic model to approximate the data.

Describe the terms bastion host dmz and dual-homed firewall : Describe the terms bastion host, DMZ, dual-homed firewall, screened host, and screened subnet and their roles in firewall architectures.

Insolvent and jeopardized the entire economy : In 2008 and 2009, taxpayer money went to prop up banks that would have otherwise been insolvent and jeopardized the entire economy.

What is the expected rate of change in the spot rate : If the forward premium is 1% what is the expected rate of change in the spot rate?

Find the cournot-nash : Suppose that there are 2 identical firms in the market. Find the Cournot-Nash equilibrium

What is percentage after-tax cost of debt : what is its percentage after-tax cost of debt? Assume a face value of $1,000.

Face a linear demand curve : Suppose we have two firms that face a linear demand curve P= a- bQ and have constant marginal costs c for each firm. Solve for the Cournot equilibrium.

Select a specific health disparity of concern to you : Provide adequate background information about the specific disparity you selected (populations affected; historical, biological, psychological,etc).

User Account

All Pages