True or False and Explain why in a paragraph:
Banks have effectively reduced risk using financial futures.
Futures are financial contracts that obligating the sellers to sell an asset or buyers to purchase an asset at a predetermined future date and price. It reduces the risk of price movement. If market participants anticipate an increase in the price of an underlying asset in future, they can gain by buying the asset in a future contract and sell it at a high price in future.
So the given statement is TRUE.
True or False and Explain why in a paragraph: Banks have effectively reduced risk using financial...
24. Risk is reduced when a high proportion of costs are fixed. True False
PLEASE EXPLAIN WHY ANSWER IS TRUE OR FALSE: "Risk aversion" implies that investors require higher expected returns on riskier than on less risky securities. a. True b. False When adding a randomly chosen new stock to an existing portfolio, the higher (or more positive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk. a. True b. False An individual stock's diversifiable risk, which is measured...
True or False? Explain. (it's true, but I need explanation) If the reduced cost of a product (decision variable) is positive, then the objective function will decrease by the amount of the reduced cost if an additional such product is produced.
True or False. If true, explain why. If False, gve a counterexample. If Σοη6" is convergent, Cnb is convergent, then Σ on(-2)" is convergent. True or False. If true, explain why. If False, give a counterexample. If Σ0n6n is convergent, then Σ cn(-6)n is convergent. True or False. If true, explain why. If False, gve a counterexample. If Σοη6" is convergent, Cnb is convergent, then Σ on(-2)" is convergent. True or False. If true, explain why. If False, give a...
: Since the 1930's commercial banks have NOT been permitted to do any type of securities underwriting. True False : With regards to a futures contract, the SHORT position will make money when the underlying item's price RISES. True False : If interest rates rise, the value of Master Limited Partnership (MLP) units will rise. True False : Basis risk is the risk to an investor arising from the uncertainty about the basis at a given future date. It is...
Decide if the following statement Is true or false. Explain why. It is possible to have a standard deviation of 440, 000
True or False? Explain why? The problem of finding a shortest path in a graph can be polynomially reduced to an instance of the integer knapsack problem
1. Explain why the Financial statements of banks and those of non-bank financial resemble each other?(2 marks) They are similar many in aspects. The general structure formula of the balance sheet is the same Assets= Liabilities + Equity. So the left side of the balance sheet is the uses of fund and the left side is the sources of funds. 2. Do they have any differences? If so explain as much as you can?(3 marks) Yes, the balance sheet formula...
TRUE or FALSE and Explain why:
true or false, please give explaination TRUE/FALSE. Explain why the answer is true or false. 3) True or False: Assume that a species has a diploid chromosome number of 24. The term applied to an individual with 25 chromosomes would be triploid. 4) True or False: Inversions suppress crossing over by providing a chemical imbalance because of breakpoints within certain genes. e or False: Individuals with familial Down syndrome are trisomic and have 47 chromosomes. 6) True or False: An...