1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vova2212 [387]
1 year ago
13

An investment that has earned a high rate of return over the last 5 years will necessarily continue to perform well in the futur

e. true or false
Business
1 answer:
bija089 [108]1 year ago
4 0

The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.

The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.

To learn more about investments, click here.

brainly.com/question/15105766

#SPJ4

You might be interested in
You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately,
Harlamova29_29 [7]

Answer:

Failing to analyze and take into account the competitor technological environment.

Explanation:

When initiating a new joint venture, a company must analyze many environments, such as cultural, organizational, financial, technological, processual, and others. In this case, it was necessary to analyze the current technological competitor environment to check the compatibility of operating systems and the cost and viability of adjusting accordingly. Nothing was done, hence the joint venture’s failure.  

4 0
3 years ago
M1 is the
Elodia [21]

Answer:

B. money market funds

Explanation:

The most limited definition of money, M1, consists just of cash and various bank accounts that allow check writing. Money in circulation includes cash, traveler's checks, demand deposits, and other types of checkable deposits.

7 0
1 year ago
It is easier for employees to develop positive customer/client relations if employees understand that each customer is
Sergio [31]
A unique individual is the answer (if this is right can you please mark as brainliest, thanks)


7 0
3 years ago
Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases.
eduard

Answer:

Risk-free rate decreases

Explanation:

The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:

1. the market rate of return,

2. the beta value

3. the risk-free rate.

Ra = Rrf + [Ba∗(Rm−Rrf)]

where:

Ra=Cost of Equity

Rrf = Risk-Free Rate

Ba = Beta

Rm=Market Rate of Return

​From the formula

Ra = Rrf + [1.2∗(Rm−Rrf)]

Ra = Rrf + 1.2Rm - 1.2Rrf

From Ra = 1.2Rm -0.2Rrf

From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.

4 0
2 years ago
an accountant is 40 years old and has an anticipated retirement age of 70 years old. the accountant plans to save $6,000 per yea
liq [111]

The accountant have upon retirement $336,509.63

What is the future value of an annuity?

The accumulated balance in the accountant's retirement account upon retirement is the future value of $6,000 invested for 3 years earning 4% annual rate of return using the future value formula of an ordinary annuity as shown  below:

FV=PMT*(1+t)^N-1/r

FV=accumulated balance after 30 years=unknown

PMT=annual investment=$6,000

r=rate of return=4%

N=number of annual investments in 30 years=30

FV=$6000*(1+4%)^30-1/4%

FV=$336,509.63

Find out more about future value on:brainly.com/question/20910838

#SPJ1

6 0
1 year ago
Other questions:
  • Petra, Inc. has collected the following data.​ (There are no beginning​ inventories.): Units produced 580 units Units sold 580 u
    10·1 answer
  • In Colonial America, laborers were<br> a. in abundance<br> b. paid good wages<br> c. in short supply
    9·1 answer
  • ​after compiling a list of potential customers, a salesperson must
    15·1 answer
  • Suppose there is a major technological advance in the production of a good that causes production costs to fall. If demand for t
    6·1 answer
  • The firm's findings are best described as the
    8·1 answer
  • The local Kennel Club is a not-for-profit organization with gross receipts of $23,500 for the current tax year. Under the Intern
    5·1 answer
  • Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2).
    9·1 answer
  • Anyone who is at least 18 years old, a citizen of the United States, and a legal resident may vote in an election. To become a s
    15·1 answer
  • Analyze the role individual team members and leaders play in ensuring or detracting from team success. In the analysis, consider
    7·1 answer
  • Paragraph on your bedroom
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!