Which of the following are not good explanations for the Weekend Effect? Select all that apply. a. Stock prices tend to decrease during the weekend, when people aren’t trading. b. The difference between Friday and Monday returns is simply due to random chance. c. Traders are unwilling to carry long positions into the weekend. d. Stocks tend to trade down during the course of the day on Mondays.

An insurance company sells policies for $1,000 each. Based on historical data, an average of 1 in 145 policyholders will file a $10,000 claim, an average of 1 in 235 policyholders will file a $50,000 claim, and an average of 1 in 320 policyholders will file a $85,000 claim, a) What is the company's expected payout per policy? $4 (Round your answer to the nearest cent) b) What is the company's expected profit per policy? (Round your answer to the nearest cent) c) If the company also pays it's insurance agents a 15% commission per policy sold, then what is the company's expected total profit after selling 2,500 policies? million dollars (Note: answer is in millions) (Round your answer to the nearest tenth of a million, and enter a negative number for a loss)

Select all of the following that are true regarding hedging: A. Hedging is risk mitigation through diversification.  B. Hedging is the same as arbitirage since it acts in across markets C. Hedging increases the returns of an investment D. Buying an risky investment is an example of hedging Detailedly Explanation Please, Thank you!

Describe a decision a company has made when facing uncertainty. Compute the expected costs and benefits of the decision. Offer advice on how to proceed. Compute the profit consequences of the advice   2. Identify something you buy or sell that could be bought or sold using an auction. How would you run the auction? Do a benefit-cost analysis of the auction relative to how you currently buy or sell.

Your 13-year old cousin knows that you are in college and learning corporate finance. She is very interested in knowing about the time value of money and tells you: “Cousin, I want to be a millionaire and learn everything about the time value of money. I need you to explain some concepts that I read on the internet, but I don’t quite understand. 1.What is compounding and discounting? 2.What is the difference between them? 3.why should I be willing to invest in the promise that I will receive a future payment? 4.Does the answer depend on who is making the promise?"

The Bloomberg index, which tracks investment-grade bonds, was down more than 13% in 2022. The stock market went also south as the S&P 500 slid  down more than 20% last year. Neither market helped investors.  Why was the bond market down last year? Some analysts are forecasting that the bond market will perform better in 2023. Why are they taking that position? Would you realigned your portfolio to more in bonds than stocks this year?   Use textbook and outside news sources to support your answers. TEXTBOOK: Economics of Money, Banking & Financial Markets; by Mishkin, Edition 13th

Which of the following is TRUE about bonds? *a. If the bond price is greater than its par value, the bond is discounted.b. None of the choices.c. If the bond price is greater than its par value, the bond is traded at a premium.d. Coupon rates are always higher than the market rate.

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4. Kate has von Neumann-Morgenstern utility function U(x1,x2) = m7. She currently has $2025. a. Would she be willing to undertake a gamble that involves a gain $2875 with probability + and a loss of $1125 with probability ? Show your work and explain your answer. b. Would she be willing to undertake a gamble that involves a gain $2599 with probability and a loss of $800 with probability ? Show your work and explain your answer.

One of the predictions of prospect theory is that we tend to be overly concerned with relatively small risk. Can you think of any example (besides those given in the lecture) that either speaks to this or is an exception?