Entities is most likely to use duration for hedging purposes

Assignment Help Financial Management
Reference no: EM13947174

Which of the following entities is most likely to use duration for hedging purposes

A. Banks

B. Auto companies

C. Like insurance companies

D. Mutual Funds

Reference no: EM13947174

Questions Cloud

Federal income tax on investment income and capital gains : Federal income tax on investment income and capital gains of a mutual fund
Portfolio return-mutual fund is greater than market return : If the portfolio return on a mutual fund is greater than the market return, but the Sharpe and Treynor measures are equal, then the fund manager's performance is
Actually be worse than a return : A return of 15 percent might actually be worse than a return of 10 percent.
Analysts estimate that the stock has beta : Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64, and ZZZ-Best consistently pays an annual dividend of $13. Analysts estimate that the stock has a beta of 1.12. The current risk-f..
Entities is most likely to use duration for hedging purposes : Which of the following entities is most likely to use duration for hedging purposes
Expiration dates in the option market : Expiration dates in the option market
Effect of taxes-find the financial break-even quantity : Consider a project with the following data: accounting break-even quantity = 11,250 units; cash break-even quantity = 10,000 units; life = seven years; fixed costs = $200,000; variable costs = $64 per unit; required return = 10 percent. Ignoring the ..
Issued dividend-growth rate in its dividends indefinitely : The Absolute Zero Co. just issued a dividend of $3.10 per share on its common stock. The company is expected to maintain a constant 6.4 percent growth rate in its dividends indefinitely. If the stock sells for $62 a share, what is the company’s cost ..
About the margin requirements on commodities contracts : Which of the following statements about the margin requirements on commodities contracts is NOT true?

Reviews

Write a Review

Financial Management Questions & Answers

  What was the fund turnover

A mutual fund sold $134 million of assets during the year and purchased $148 million in assets. If the average daily assets of the fund were $416 million, what was the fund turnover?

  Asset has had an arithmetic return-geometric return

An asset has had an arithmetic return of 11.7 percent and a geometric return of 9.7 percent over the last 82 years. What return would you estimate for this asset over the next 6 years? 21 years? 37 years?

  Total value of the warrants and the value of each warrant

A warrant is a long-term option from a company that gives the holder the right to buy a stated number of shares of the firm’s stock at a specified price for a specified length of time. What is the total value of the warrants and the value of each war..

  Area expierneces a sudden or dramatic downturn

How might a bank adjust its credit policies if the area expierneces a sudden or dramatic downturn? Suggest two adjustments the bank should make when applying the five C's of credit in such a situation.

  What is the net present value of project with cash flows

What is the net present value of a project with the following cash flows if the discount rate is 15 percent?

  Tax rate schedule-how much gain is included in gross income

Scot and Vidia, married taxpayers, earn $184,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule). This year, Fred and Wilma sold their home (sales price $750,000; cost $200,000). Al..

  Constant growth rate and g

A stock is trading at $75 per share. The stock is expected to have a year-end dividend of $2 per share (D1 = $2), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 15% (assume the market is in ..

  Compute the cash collections from sales for each quarter

The sales budget for your company in the coming year is based on a quarterly growth rate of 10 percent with the first-quarter sales projection at $225.8 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, −..

  Discuss the income taxation of retirement benefits

Explain and discuss the income taxation of retirement benefits, including required minimum distributions, inherited pension benefits, etc. Give some examples.

  Determine the payback period for each machine

Payback comparisons Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternative ones. Determine the payback period for each machine. Comment on the accept..

  What is the firms after-tax cost of debt on the bond

(cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semi annually. Investors are willing to pay $958 for the bond. The company is in the 18 percent m..

  How much future cash flow and the timing of the cash flows

How much future cash flow and the timing of the cash flows and value of money calculation based on the riskiness of the cash flows?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd