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Marizza181 [45]
4 years ago
5

2. Stock prices and stand-alone risk Risk is the potential for an investment to generate more than one return. A security that w

ill produce only one known return is referred to as a risk-free asset, as there is no potential for deviation from the known expected outcome. Investments that have the chance of producing more than one possible outcome are called risky assets. Risk, or potential variability in an investment’s possible returns, occurs when there is uncertainty about an investment’s future outcome, such as the return expected to be generated by the investment and realized by an investor. You invest $100,000 in only one stock. What kind of risk will you primarily be exposed to? Portfolio risk Stand-alone risk Generally, investors would prefer to invest in assets that have: a high level of risk and low expected returns. a low level of risk and high expected returns.
Business
1 answer:
hammer [34]4 years ago
6 0

Answer:

kjjjkknnhhzikkknnnbgfree

Explanation:

ffgj=bvftzuikjgfetuh

vji

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How much does it cost to play 18 holes at augusta national.
Vladimir [108]

Answer:

$21 to $27

Explanation:

That how much it is

5 0
2 years ago
Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan
omeli [17]

Answer:

$23.25

Explanation:

the maximum that you would be willing to pay for a stock of Universal today can be determined using the multistage dividend discount model

The first step is to find the present value of the dividends over the next four years :

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $8

Cash flow in year 2 = $4

Cash flow in year 3 = $2

Cash flow in year 4 = $2

I = 15%

Present value = $12.44

Next we would find the present value of the perpetual growth of dividend

($2 x 1.04 ) / 0.15 - 0.04 = 18.91

the present value of this amount = $18.91 / = $10.81

Maximum value = $12.44 + $10.81 = $23.25

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

3 0
3 years ago
Which of the following represents a positive economic statement?
Alecsey [184]

Answer:

I think the answer is B, I hope it helps.

Explanation:

8 0
3 years ago
Read 2 more answers
Find the present value pv of the given investment. an investment earns 2% per year and is worth $40,000 after 8 years.
LuckyWell [14K]
First use the formula of the future value of an annuity ordinary to find the yearly payments
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value 40000
PMT yearly payment?
R interest rate 0.02
N time 8 years
Solve the formula for PMT
PMT=Fv÷[(1+r)^(n)-1)÷r]
PMT=40,000÷(((1+0.02)^(8)−1)
÷(0.02))
=4,660.39

Now use the formula of the present value of an annuity ordinary to find the present value
Pv=pmt [(1-(1+r)^(-n))÷r]
PV present value?
PMT yearly payments 4660.39
R interest rate 0.02
N time 8 years
Pv=4,660.39×((1−(1+0.02)^(−8))÷(0.02))
pv=34,139.60. ....answer
5 0
3 years ago
The SP Corporation makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this l
Yuri [45]

Answer:

c) 108,000 dollars

Explanation:

Buy option:

Purchase:        40,000 motors at 25.15 = 1,006,000

unavoidable fixed cost: 40,000 x 4.60 =    184,000

                                                               1,190,000.00

Produce option:

Manufacturing Cost (9.9 + 8.9 + 3.65) x 40,000 = 898,000.00

Fixed cost:                                                                  184,000.00

Total Cost                                                          1,082,000.00

Differential:  1,190,000 - 1,082,000.00 = 108,000.00

It is advantageous to continue the production as the unavoidable cost will make the buy option a worse deal

5 0
3 years ago
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