Au. s. investor has a choice between a risk-free one-year u. s. security with an annual return of 4%, and a comparable british security with a return of 5%. if the spot rate is $1.43/£, the one-year forward rate is $1.44/£, and there are no transaction costs, should the investor invest in the u. s. security? (hint: use interest rate parity to answer this question) (show your calculations! )

Assume that a national restaurant firm called bbq builds 10 new restaurants at a cost of $1 million per restaurant. it outfits each restaurant with an additional $200,000 of equipment and furnishings. to partially defray the cost of this expansion, bbq issues and sells 200,000 shares of stock at $30 per share. what is the amount of economic investment that ahs resulted from bbq's actions? how much purely financial investment took place?

Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?