As a discipline, Governance is most closely related to:

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the st

stealth61 [152]

Answer:

hello your question is incomplete below is the complete question and the missing table

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll

answer : $42003667

Explanation:

$100 million in stocks

According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below

we have to calculate the total return on both Roll corporation and Frankfurter sausage

for f-sausage

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.1 .... + 1 + 0.1 ) = -0.0297 = -2.97%

for Roll corporation

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.05 .... + 1 + 0.1 ) = -0.012475 = - 1.24%

next we will calculate the total loss inquired when investing in Roll corporation

Total loss = percentage loss * total investment

= 0.012475 * $100 million = - $ 1247500

we will have to offset the loss by shorting investments in F sausage

hence : $1247500 = investment in sausage * total return

1247500 = investment in sausage * 0.0297 ( The total return of F sausage is positive because it was a short position )

hence short investment in F sausage to offset loss incurred in ROLLS INVESTMENT

= 1247500 / 0.0297 = $42003667

8 0

2 years ago

Juanita Cash, the operations planner for the First State Savings and Loan, is planning the next quarter's level of deposits. She

yulyashka [42]

Answer:

For each one percent increase in the interest rate, amount of deposit increases by 11.145%

Explanation:

To obtain the amount rate at which deposit increase per percentage increase in interest rate ;

We obtain the slope Coefficient of the regression equation between the amoub of deposit and interest rate paid.

From the result of the analysis given ;

The slope Coefficient of X, interest rate % is 11.145

Hence, For each one percent increase in the interest rate, amount of deposit increases by 11.145%

4 0

2 years ago

LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon

pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.

4 0

2 years ago

A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. Whe

igor_vitrenko [27]

Answer

lost / lost

A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. When ethics violations were reported to the executives however, no changes or reprimands were made. Consequently, the policies ____lost____ value and executives __lost______ the respect of employees

Explanation:

Creating ethics policies is extremely important for an organization to align employee behavior with its organizational culture. Business values, when clearly and effectively established, help at various organizational levels, such as good team relationships, conflict resolution, and effective communication among all employees. In the above question, as there was no compliance with the ethics policy implemented by the CEO and no correction of the failures, there was a lost of value of the policy and lost of respect for employees.

4 0

2 years ago

JJ was recently promoted to manager. Although he used to take advice from his peers, he seems no longer willing to listen to any

stich3 [128]

Answer:

B. An oversized ego.

Explanation:

An oversized ego basically depicts that JJ inability to listen to his peers, and he is no longer willing listen to his boss, and that proves he is too full of himself.

8 0

2 years ago

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