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jeyben [28]
4 years ago
10

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

Business
2 answers:
Tamiku [17]4 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]4 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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Which of the following is a job from the past which no longer exists?
klasskru [66]

Answer:

Lamp lighter

Explanation:

Very few exist today as most street lighting has long been replaced by electric lamps.

6 0
3 years ago
4. Noah paid all of his bills and put a bit of money in savings for the month. He has a little bit of money left-over to spend o
Semenov [28]

Answer:

Disposable Income

Explanation:

dis·pos·a·ble in·come

/dəˈspōzəbəl ˈinˌkəm,dəˈspōzəbəl ˈiNGˌkəm/

Learn to pronounce

noun

income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

"the rents of tenants in work reached 21 percent of disposable income"

6 0
3 years ago
A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.
Naily [24]

Answer:

$300 is reported as a expense

Explanation:

and $900 is reported as an asset hope this helps you :) god loves you :)

7 0
3 years ago
Bottlenecks exist in which type of manufacturing processes?
saul85 [17]

Answer:Line,Batch and Job

Explanation:

An assembly line is a manufacturing process in which interchangeable parts are added to a product in a sequential manner to create an end product. ... The workers and machinery used to produce the item are stationary along the line and the product moves through the cycle, from start to finish.

Batch manufacturing is a style of manufacturing which compiles the different components of a product through step by step processes. This basically means that the raw materials move through the production line in batches, so that there is a pause between each step as a batch moves through.

Job production, sometimes called jobbing or one-off production, involves producing custom work, such as a one-off product for a specific customer or a small batch of work in quantities usually less than those of mass-market products.

6 0
3 years ago
A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed
Vilka [71]

Answer:

= 5,200

Explanation:

Let the sales units be represented by variable X

Profit = Revenues -COGS -Fixed costs

Revenues = Selling price *X = $5X

COGS = $2.5X

Fixed costs = $3,000

Desired profit = $10,000

Therefore;

10,000 = 5X -2.5X - 3,000

Add 3,000 on both sides;

10,000 +3,000 = 2.5X

13,000 = 2.5X

Divide both sides by 2.5 to solve for X;

13,000/2.5 = X

X = 5,200

Therefore, the sales level in units is 5,200

3 0
3 years ago
Read 2 more answers
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