Will the law of one price apply better to gold or to Big Macs? Why?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
The law of one price will hold better for gold Gold can be traded easily so that any price di...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Explain how the premium and discount are determined when assets are priced to market. When will the law of one price prevail in international capital markets even if foreign equity ownership...
-
What do economists mean by the law of one price? Why might the law of one price be violated?
-
Given the following, does the law of one price hold? If not, what action should an investor take? Cash Flows in Period Bond 100 80 90 1,100 1,080 1,090 Price 970 936 980
-
Has Mississippi enacted the Uniform Real Property Electronic Recording Act? Provide the URL/web address of your source. Provide the citation to where this law is found in the Miss. Code (including...
-
Kyle Smitley is the founder of barley & birch. Assume that her company currently has $250,000 in equity, and she is considering a $100,000 expansion to meet increased demand. The $100,000 expansion...
-
What is the isotropy of static pressure at any point in a static fluid?
-
How is Nick likely to interpret the phrase I want you to think seriously about finding another type of job LO.1
-
Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1 million. Its depreciation and capital expenditures will both be $300,000, and it expects its capital...
-
Identify and define financial crime enterprise risks and provide examples of each risk.
-
A manufacturer produces four products, each using a different raw material. The following table provides cost and market value information on these inventories. Required: For each of the above...
-
You observe the following current rates: Spot exchange rate: $0.01/yen. Annual interest rate on 90-day U.S. dollar-denominated bonds: 4%. Annual interest rate on 90-day yen-denominated bonds: 4%. a....
-
According to PPP and the monetary approach, why did the nominal exchange-rate value of the DM (relative to the dollar) rise between the early 1970s and the late 1990s? Why did the nominal...
-
explain the broad implications of the Internet on the marketplace.
-
Use as many directional terms as possible to describe therelationshipbetween: a. the antecubital region and the poplitealregion b. the acromial region and the mentalregion c. the gluteal region and...
-
Average rate of return-cost savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $114,000 with a $10,000 residual value...
-
Alan was rated as excellent on his individual work performance evaluation, earning him $2,000, provided as a merit pay increase. His annual salary this year is $48,000. He works in a team of 3...
-
Josie spends $60 at the end of each month on cigarettes. If shestops smoking and invests the same amount in an investment planpaying 6% compounded monthly, how much will she have after fiveyears? 2...
-
Say we have a Boeing 747 whose longitudinal flight dynamics for a given flight condition may be approximated using the following state equation (uncontrolled motion; thus no need to consider the...
-
Going back to the Ned Kelley Hedge Fund in our previous example, what loss level might we expect over six months with a probability of .17? Example 13.11 The Ned Kelley Hedge Fund focuses on...
-
Cornell and Roberts are partners who agree to admit Stanley to their partnership. Cornell has a capital balance of $80,000 and Roberts has a capital balance of $120,000. Cornell and Roberts share net...
-
The Swiss economist Alexander Swoboda has argued that the Eurodollar markets early growth was fueled by the desire of banks outside the United States to appropriate some of the revenue the United...
-
After the developing-country debt crisis began in 1982 (see the next chapter), U.S. bank regulators imposed tighter supervisory restrictions on the lending policies of American banks and their...
-
Why might growing securitization make it harder for bank supervisors to keep track of risks to the financial system?
-
Transcribed image text
-
QUESTION 20 Assume a company reported the following results Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) 5300,000 2 $240.000 40% ? 2 What is the net...
-
2. Using the graph provided below, determine the fixed cost, the total variable cost, the variable cost per unit, and the TOTAL COST to produce 60 units. Fixed Cost ______________ Variable Cost...
Study smarter with the SolutionInn App