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yan [13]
2 years ago
11

A trader wishes to unwind a position of 200,000 units in an asset over eight days. The dollar bid–offer spread,as a function of

daily trading volume q, isa+ becq where a = 0.2, b = 0.15, and c = 0.1 and q is measured in thousands. The standard deviation of the price change per day is $1.50. What is the optimal trading strategy for minimizing the 99% confidence level for the costs? What is the average time the trader waits before selling? How does this average time change as the confidence level changes?

Business
1 answer:
suter [353]2 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
coldgirl [10]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
2 years ago
U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 w
GaryK [48]

Answer:

Total= $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense= 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV= PV*(1+i)^n

First deposit= 3,200*(1.0485^5)= $4,055.01

Second deposit= 5,000*(1.0485^2)= $5,496.76

Third deposit= 3,500*(1.0485)= $3,669.75

Total= $13,221.52

4 0
2 years ago
Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute. rack jobbers retailers cash-and-c
ANEK [815]
The correct answer is agents and brokers. Agents and brokers are considered to be a non-manufacturing traders by which they sell, buy, or even facilitate the traded products of which the goods that they sell are not theirs or they didn't actually owned it.
6 0
2 years ago
Tanner wants to buy a new car. What will he most likely consider when making his decision on the type of car to buy?
Nitella [24]

Answer: a deal website that compares different types of cars, so he can choose the one he likes best

Explanation:

When buying a good or service, it is best to look out for a variety of those goods because it will enable a person to be able to compare the different varieties and be able to pick the one most suitable for them.

Tanner therefore will most likely use a website that compares cars so that he is able to see the features that different cars offer which will enable him make a decision that is most suitable for him.

8 0
2 years ago
Global use of cell phones grew rapidly between 1989 and 2000. below is a scatterplot of the percentage of people in the world wh
Minchanka [31]

Answer:

Explanation:

A)

The regression equation is,

ln(Cell Phone Subscribers) = -820.894 + 0.411704 Year

or,

Percent of Cell Phone Subscribers = exp(--820.894 + 0.411704 Year)

For the year 2005,

Percent of Cell Phone Subscribers = exp(--820.894 + 0.411704 * 2005)

= 96.79%

B)

P-value for the significance of the slope is very low (0.000). Thus, the model is statistically significant and the prediction of the model is highly reliable.

5 0
2 years ago
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