Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. this implies an exchange rate of $1.75 per pound. if the current market exchange rate is $1.60 per pound, how would you take advantage of this situation? hint: assume that you have $350 available for investment. a. start with $350. buy 10 ounces of gold with dollars at $35 per ounce. convert the gold to £200 at £20 per ounce. exchange the £200 for dollars at the current rate of $1.80 per pound to get $360. b. start with $350. exchange the dollars for pounds at the current rate of $1.60 per pound. buy gold with pounds at £20 per ounce. convert the gold to dollars at $35 per ounce. c. a) and b) both work d. none of the above

Which of the following areas provides residents with close access to high-paying jobs and cultural attractions? a. the suburbs b. exurbs c. rural areas d. the city 2b2t

Exercise 4-6 the following balances were taken from the books of alonzo corp. on december 31, 2017. interest revenue $86,000 accumulated depreciation—equipment $40,000 cash 51,000 accumulated depreciation—buildings 28,000 sales revenue 1,380,000 notes receivable 155,000 accounts receivable 150,000 selling expenses 194,000 prepaid insurance 20,000 accounts payable 170,000 sales returns and allowances 150,000 bonds payable 100,000 allowance for doubtful accounts 7,000 administrative and general expenses 97,000 sales discounts 45,000 accrued liabilities 32,000 land 100,000 interest expense 60,000 equipment 200,000 notes payable 100,000 buildings 140,000 loss from earthquake damage 150,000 cost of goods sold 621,000 common stock 500,000 retained earnings 21,000 assume the total effective tax rate on all items is 34%. prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (round earnings per share to 2 decimal places, e.g. 1.48.)

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable