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Question 1 Insurance is protection against possible financial loss. Explain life insurance in detail
Question 2 Mutual funds are a composite of stocks, bonds, and securities, which are organised together by the fund manager. Discuss the factors related to buying or selling of mutual funds
Question 3 Estate planning is the process of planning for efficient handling of the assets in the event of the owner's death. Explain legal aspects of Estate planning
Name two patterns of cash flows for a share of common stock. How does the market define the value of the most common cash flow pattern for common stock? Cash flows for a share
Q. Define Working Capital. Ans. Introduction: - Working capital plays the similar role in the business as the role of heart in the human body. Just like heart gets blood as well
(a) One could obtain a market arbitrage position as follows: buy Honeywell shares as well as sell General Electric shares. If the merger gets place the Honeywell shares will conve
Q. What is Deposit Method? Deposit Method - Related to sales of real estate, under this method seller doesn't recognize any profits, doesn't record a note RECEIVABLE and contin
Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the sub
Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer: The competitive effect: Exchange rate modifications may in
Internal Rate of Return (IRR) : This rate attempts to find the earnings rate, which equates the current value of the streams of earnings to the investment outlay. IRR is descri
Diversification A strategy which tends to move into new products and new markets in which organisation is unfamiliar with. Related for example vertical forwar
What does it mean when the U.S. dollar weakens in the foreign exchange market? When the U.S. dollar decline in the foreign exchange market one U.S. dollar buys less units of an
Historically, three types of shapes have been observed for the yield curve. The relative change in the yield for each treasury maturity is known as a
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