![brighamc23](/avatars/28370.jpg)
brighamc23
19.10.2020 •
Business
Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the components (determinants) and the symbols associated with each characteristic:
a. This is the rate for a riskless security that is exposed to changes in inflation.
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
c. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
d. This is the rate for a short-term riskless security when inflation is expected to be zero.
e. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value.
f. This is the premium added as a compensation for the risk that an investor will not get paid in full.
Solved
Show answers
More tips
- C Computers and Internet How to Properly Repartition a Hard Drive?...
- A Auto and Moto What Is the Cost of Customs Clearance for a Car in Russia?...
- L Leisure and Entertainment Should You Buy a Ceramic Knife?...
- C Computers and Internet How to easily and quickly disable Firebug in Gmail and Google Docs...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
Ответ:
a. This is the rate for a risk less security that is exposed to changes in inflation.
Component: Nominal risk free rate
Symbol: rRF
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
Component: Inflation premium
Symbol: IP
c. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
Component: Maturity risk premium
Symbol: MRP
d. This is the rate for a short-term risk less security when inflation is expected to be zero.
Component: Real risk free rate
Symbol: r*
e. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value.
Component: Liquidity risk premium
Symbol: LRP
f. This is the premium added as a compensation for the risk that an investor will not get paid in full.
Component: Default risk premium
Symbol: DRP
Ответ:
infrastructure
Explanation:
Based on the scenario being described within the question it can be said that Anita is evaluating the infrastructure component. This component refers to the analyzing all of the physical facilities and systems that will be needed for the business within a certain market. This includes distribution and communication channels as well as the warehouses and facilities for the business' operations.