Answer: The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return.
Explanation:
Stock in general is more risky than most financial instruments but this risk is accompanied with greater returns. This is why it is generally advisable to diversify stock in a portfolio.
As already mentioned, stock is risky but rewarding. It therefore follows that the more stock is in a portfolio, the risker the portfolio but the greater the average return.
<span>Household production and the underground economy.
All of the above
- Not crime adjusted
- value of leisure not included
- Not adjusted for pollution and unequal distribution</span>
True
Return to investment: margin+turnover
Margin-net operating income/ sales
Turnover-sales/average operating assets.
Answer:
4) has a fixed number of payments in equal amounts
Explanation:
1) the term is much longer than other loans
FALSE, installment loans can be short or long, the term refers to periodic payments.
2) lower interest rates are charged to borrowers
FALSE, interest rates vary depending on the customer and the purpose of the loan, they can be higher or lower.
3) is technically an unsecured loan
FALSE, they can be secured or unsecured loans, there is no one size fits all rule
Answer:
1,980,000 $40
Explanation:
The following is given;
No. of outstanding shares = 13,200,000
Unit stock price = $50
Acquisition by the unfriendly outside group= 15%
The existing stockholders buy new shares at 20% below $50.
It is worth learning that poison pill is a tactic used by a company that's threatened with an unwelcome takeover bid to make itself unattractive to the bidder. Through the tactic, the company sells a large number of stocks to existing shareholders at lower prices. Thus,
a) the No. of shares to be sold to the unfriendly group
= 15% * 13,200,000 = 1,980,000
b) They will buy at 20% below $50 which translates to
$50*( 1- 0.2)
$50*0.8 = $40
Thus, the new purchase price will be $40 per stock
