The Discount rate reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well as the risks associated with not receiving returns until a later time.
Explanation:
The discount rate relates to the interest rates on loans that the Federal Reserve Bank borrows from central banks and financial institutions through the commercial bank loan mechanism.
The rate of barriers, financial assets and discount rates are all equal. The next best potential investment option with a comparable risk profile wins the rate of returns. The word ' opportunity expense' is a clear and generic concept that can be used any day of the day.
Answer:
Yes, the prices of large capitalization stocks tend to be more efficient.
Explanation:
Large capitalization stocks are much more liquid than small capitalization stocks since they belong to well established companies that are generally industry leaders. A lot of investors trade their stocks every single day, which results in thousands of them being sold every trading day. That also lowers the opportunity for arbitrage, since a large of investors must be wrong and a single (or a few) arbitrator must be right.
Large capitalization stocks generally have more stable prices and tend to pay consistent dividends. Their sustainable growth rate is lower than most small capitalization stocks but it is much more steady. This also results in lower potential returns when investing in large capitalization stocks since they pose a very low risk. On the other hand, small capitalization stocks pose a larger risk and one of them is that they are not valued correctly (which allows arbitrators to step in).
Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. she stays in touch with her customers, hoping to find out when they are going through NEED RECOGNITION.
Both the Business to Business and the Business to Consumer buying processes begin with need recognition.
