Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

The swiss National Bank is the central bank of smitzerland. sike some other central banks, it is partially privately orwned and its shares are traded

image text in transcribed

The swiss National Bank is the central bank of smitzerland. sike some other central banks, it is partially privately orwned and its shares are traded on a stock exchange. Although 48% of the stock is held privately, the swiss cantonal (i.e., provinces) governments, cantonal banks and public-sector organizations orwn the balance and control 75% of the noting porver. The \& N B is sometimes regarded as akin to a "hedge fund" as unlike many central banks, the \&NB also invests in equities with 20% of its. \&F1.7 trillion portfolio comprised of equities. Horvever, sharcholders don't get to share in any/gains. from the equity investments as dividends are fixed at \& 715 per share per year. The \&N B has pursued a policy of negative interest rates with the 10-year smiss government bond yielding a negative 49.9 basis points or 0.499%. The price of the stock closed at \& 54,770 (U\&\$5,212) per share on Juesday, October 13, 2020. Given the above information, what type of security is \& N B stock most akin to from a private investor's perspective and why might individuals leuy it. Explain. The swiss National Bank is the central bank of smitzerland. sike some other central banks, it is partially privately orwned and its shares are traded on a stock exchange. Although 48% of the stock is held privately, the swiss cantonal (i.e., provinces) governments, cantonal banks and public-sector organizations orwn the balance and control 75% of the noting porver. The \& N B is sometimes regarded as akin to a "hedge fund" as unlike many central banks, the \&NB also invests in equities with 20% of its. \&F1.7 trillion portfolio comprised of equities. Horvever, sharcholders don't get to share in any/gains. from the equity investments as dividends are fixed at \& 715 per share per year. The \&N B has pursued a policy of negative interest rates with the 10-year smiss government bond yielding a negative 49.9 basis points or 0.499%. The price of the stock closed at \& 54,770 (U\&\$5,212) per share on Juesday, October 13, 2020. Given the above information, what type of security is \& N B stock most akin to from a private investor's perspective and why might individuals leuy it. Explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Small And Entrepreneurial Business

Authors: Richard Roberts

1st Edition

0415721008, 978-0415721004

More Books

Students also viewed these Finance questions

Question

KEY QUESTION Refer to columns 1 and 6 in the table for question

Answered: 1 week ago