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Investment protects are inherently risky, and when calculating either of these numbers many assumptions need to be made. From projecting what future inflows and outflows will be, to deciding what rate of return to use to discount these projects payoffs. As far as I know, usually both measures are calculated and considered when making a decision since they ...

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In dealing with problems like this, it's helpful to do it in stages. You know that the two dealers take the wholesale price $r$ as a given (they can't change that), and car dealer $i$ choose retail price $q_i$ to try to maximize their profits $q_i \cdot (P - r)$. You also know that these car dealers are exactly the same... they have the same cost, set some ...

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As Brian Romanchuk commented, there are a number of factors that can affect the daily price of an asset. Gold is one of the most traded futures contracts on the CME so the performance of one bank (assuming you mean Deutsche Bank) might not be enough to offset those other factors. But there is a strong correlation between gold and fiat currencies. This ...

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This is not an issue of "established practice", but of methodological and conceptual consistency. In theoretical models, for "real" magnitudes we write, say $W_R = W_N/P$ where $P$ is the "price index" and we're done. But in reality, in order to obtain an actual value for this price index (and hence also of inflation), we must specify a base period, ...

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Set the inequality $P>Par$, substitute the bond price equation, and then manipulate the inequality to find your result: $$P>Par$$ $$\frac{c}{y}\left(1-\frac{1}{(1+y)^T}\right)+\left(\frac{Par}{(1+y)^T}\right)>Par$$ $$\frac{c}{y}\left(1-\frac{1}{(1+y)^T}\right)>Par\left(1-\frac{1}{(1+y)^T}\right)$$ $$\frac{c}{y}>Par$$ Let $c=r_cPar$ so that \$...

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