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
Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,
kolezko [41]

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

         Cr Cash 10,000

         Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date                         Cash flow     Discount         Balance

January 2, 2021       -$10,000                             $10,515.42

January 2, 2022       $1,000        $171.81            $10,343.61

January 2, 2023       $1,000        $171.81             $10,171.80    

January 2, 2024       $11,000       $171.80                  $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

      Cr Interest revenue 1,171.81

7 0
2 years ago
A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required marg
astra-53 [7]

Answer:

It will increase by 50%

Explanation:

Equity is given as: credit - short market value.

Find attached below table of solution

4 0
3 years ago
What is the purpose of the sherman antitrust act
tamaranim1 [39]
To destory monopolies that were using their power to harm society.
7 0
3 years ago
Read 2 more answers
Ben is a manager and has many responsibilities to fulfill. What should he do to maintain a proper work-life balance?
san4es73 [151]

Answer: Option A

Explanation: Determine priorities and set realistic goals

7 0
3 years ago
Read 2 more answers
Sally Company manufactures large kitchen appliances. For the first year of purchase, the company will repair any manufacturing d
zzz [600]

Answer:

warranty

Explanation:

A warranty is a guarantee from a seller to  buyer promising to if necessary repair or replace the purchased item with a stated period.

8 0
3 years ago
Other questions:
  • E21A­1. (Lessee Entries; Finance Lease with No Residual Value) (LO 1, 4) DU Journeys enters into an agreement with Traveler Inc.
    8·1 answer
  • What is the monthly paycheck of an officer manager whose salary is 57,000 per year
    7·1 answer
  • Place the steps of the marketing research approach in the correct order. NOTE: The first step should be the top item in your lis
    13·2 answers
  • Unhappy customers equal<br> Less Profit <br> More Profit
    12·1 answer
  • If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportat
    15·1 answer
  • Which government action is related to fiscal policy?
    8·2 answers
  • In 2020, Sunland Corporation incurred research and development costs as follows: Materials and equipment $116000 Personnel 13600
    14·1 answer
  • Create a cash flow statement for your own finances. Why are cash flow statements useful in managing money?
    12·1 answer
  • A core aspect of marketing involves a(n) , which is a transaction in which things of value are traded by buyers and sellers.
    12·1 answer
  • in a simple economy with no government, aggregate expenditure is group of answer choices consumption plus the mpc. mpc mps. cons
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!