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3 years ago

If an investor thinks that a stock's expected return exceeds its required return, the investor should _____.

Business

2 answers:

Tamiku [17]3 years ago

8 0

Answer:

Buy the stock because it is underpriced and investor will make money in the near future.

Explanation:

Required rate of return is defined as the estimated return am investor wants to gain for taking on a certain amount of risk when investing in securities.

The higher the risk the higher the required rate of return.

If the expected rate of return exceeds the required rate of return then the investor will consider the share underpriced and experiencing supernormal growth.

For example if a stock has required rate of return as 10% and expected rate of return as 15%, it means that the stock will perform above its peer stock in the market and the price will rise in the future.

Dima020 [189]3 years ago

4 0

Answer:

If an investor thinks that a stock's expected return exceeds its required return, the investor should _____.

buy the stock.

Explanation:

By purchasing the stock, the investor increases his returns. This is because the expected return is said to exceed the investor's required return. The expected return is the income that the stock will generate after weighing-in or considering other market variables. This expected return may be based on percentage terms or dollar dollars. It is better for the investor that the expected return exceeds the investor's required return.

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As you read through the draft of your message, you consider whether parts of your message should be rearranged to make your poin

soldier1979 [14.2K]

Answer:

The correct answer will be "Editing".

Explanation:

Editing seems to be the process where even the letter being written is reconstructed or reconfigured to more efficiently express the letter.
Arranging, modifying, as well as assembling a recorded, written, or video content for official completion, commonly by such an individual except for the producer of the content (considered as an editor).

The other options in question aren't relevant to the particular circumstance. So the option available here is just the right one.

3 0

3 years ago

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP

Delicious77 [7]

Answer:

The correct answer is option a and option b.

Explanation:

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP.

This is because the GDP of a nation is the value of final goods and services produced in an economy in a year by both domestic citizens as well as foreign residents.

While GNP of a nation does not include the income earned by the foreign residents within the boundaries of a nation. So it is lower than GDP.

4 0

3 years ago

Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm

Reika [66]

Answer:

d. Supply is perfectly elastic.

Explanation:

Perfectly elastic supply is when a change in price causes supply to fall to zero.

The supply curve is usually an horizontal line.

I hope my answer helps you

3 0

3 years ago

Rayna provides a significant amount of information to others across a wide array of products, including durables and nondurables

Nonamiya [84]

Answer:

market maven

Explanation:

Market maven -

The term is associated with the person, who has the complete knowledge of the goods and services and the market , is referred to as a market maven.

A market maven has a lot of connection with various people and is very well - versed on the current state of the market , and has some discreet information which a normal person can never get access to .

The very so famous market maven are - George Soros , John Bogle and Warren Buffett.

Hence , from the given scenario of the question,

The correct answer is market maven .

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3 years ago

A farmer raises wheat and pays a portion of it as a tax that is collected by government agents and sent to a central storage fac

Olegator [25]

Answer:

REDISTRIBUTION

Explanation:

Redistribution of assets and income can be defined as social mechanism like taxes, education, healthcare, government services, political reform, fiscal policy, confiscation, separation or tort rule is the redistribution of wealth and income from some persons to others.

The phrase's meanings differ, based on private experiences, political philosophies and limited statistical usage. In politics, it is often said, probably referring to supposed transfers of wealth from those with more to those who have less.

3 0

3 years ago