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Serjik [45]
3 years ago
5

Most investors are risk-averse, which means they:

Business
1 answer:
DochEvi [55]3 years ago
5 0

Answer:

"Require an increase in return for any increase in risk"

Explanation:

A risk-averse investor would not consider the choice to risk $1,000 loss with the possibility of making $50 gain to be the same risk as a choice to risk only $100 to make the same $50 gain.

A risk-averse individual has a low risk tolerance or a high risk aversion. These conservative investors are willing to accept little to no volatility in their investment portfolios. Investors who are looking for "safer" investments typically invest in savings accounts, bonds, dividend growth stocks and certificates of deposit (CDs).

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If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost o
Luden [163]

Answer:

CAPM= RF+B(RM-RF)

= 9+1.6(13-9)

=15.4%

13=RS+1.6*(4)

13=RS+6.4

RS=13-6.4

RS=6.6%

Explanation:

3 0
3 years ago
Amanda is trying to decide whether to get a job after graduation or to spend another year in school to get her master's degree.
Alenkinab [10]

Answer:

36,000

Explanation:

5 0
3 years ago
The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the
klemol [59]

Answer: 2.09

Explanation:

Given the following ;

Strike price (K) = $50

Price (c) = $6

Rate (r) = 6% = 0.06

Stock price (So) = $51

Time (T) = 1

Recall, relation for a put-call parity(p) is given by:

p + So = c + Ke^-(rT)

p = c + [Ke^-(rT)] - So

p = 6 + [50e^-(0.06 × 1)] - 51

p = 6 + [50×e^-0.06] - 51

p = 6 + (50 × 0.9417645) - 51

p = 6 + 47.0882267 - 51

p = 53.0882267 - 51

p = 2.0882267

p = 2.09

4 0
3 years ago
Based on the following data, what is the amount of current assets? Accounts payable……………………………………………………….. $62,000 Accounts rece
Vlad1618 [11]

Answer:

The amount of current assets are $252,000

Explanation:

Current assets: The current assets are those assets who are converted into cash within one year. Like - accounts receivable, cash, inventory, prepaid insurance, etc.

The total amount of the current assets are shown below:

= Accounts receivable + Cash + Inventory +  Short-term investments + Prepaid insurance

= $100,000 + $70,000 + $80,000 + $2,000

= $252,000

The other items represent current liabilities, long term liabilities, intangible assets, and the fixed assets so, we do not consider them in the computation part.

4 0
3 years ago
A group of brands that results from an information search that a buyer can choose among is referred to as the buyer’s __________
Gennadij [26K]

Answer:

The correct answer is "evoked set"

Explanation:

An evoked set is a term that refers to the capacity of a customer to choose a specific brand because the customer reminds a product of a previous marketing campaign that takes effect on him.  

The essence of marketing campaigns is to establish their business brand firmly on the market.  

Example: When a person purchases a specif brand because it appeared on the tv, radio, newspaper... Sometimes the customer doesn't know why he chose this brand, just know that he likes it.  (Probably for a marketing campaign)

3 0
3 years ago
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