Describe how the concept of beta impacts financial decision making

1 answer:

6 0

The concept of beta impacts financial decision making by providing information volatility or systematic risk of a security.

The information that provided by the concept of beta would take form in a comparison between your chosen securities with other securities that exist in the market. For investors who prefer low risk but small and steady return, they can use the concept of beta to find out the securities with low level of volatility.

You might be interested in

Suppose a manager's preferences depend only on profit. such a manager will then have an indifference curve that:

My name is Ann [436]

If a manager's preferences depend only on profit. such a manager will then have an indifference curve that is tangent to the profit curve at a quantity exactly equal to 2.5.

6 0

3 years ago

Mr. smith has an income of $40,000 this year and $60,000 next year. he can invest in a project that costs $30,000 this year, whi

Phoenix [80]

The income and expenses Mr. Smith Incurs this year:

Income: $40,000

Project Cost this year: $30,000

Consumes: $50,000

Consumption this year = $40,000 - $30,000 - $50,000

Consumption this year = -$40,000

Future value of the conumption this year = -$40,000*1.1 = -$44,000

Consumption next year:

Income : $60,000

Income from the project: $36,000

Total income next year = $96,000

Consumption next year = -$44,000 + $96,000

Consumption next year = $52,000

Thus consumption next year is $52,000

6 0

3 years ago

Business cycles are

igor_vitrenko [27]

C is the answer
Say thanks !

5 0

3 years ago

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equit

Allisa [31]

Answer:

Balance sheet is the correct answer because it tells about the worth of company, its assets, shareholders funds (Equity) and amount borrowed by the company (Liability). Balance sheet is also known as Statement of Financial Position (SOFP)

All the other options tells about the earnings and costs of the company not about the assets and liabilities of the company.

6 0

3 years ago

In phenomenological studies, researchers strive to ensure that their own preconceived beliefs and opinions do not influence the

Mekhanik [1.2K]

Answer:

D is the correct answer.

Explanation:

It is an important part of some qualitative research philosophies especially for those in which interviews and observations need to be taken. It is also known as mind mapping or Phenomenological reduction. The purpose of this technique is to develop a non-judgmental research team, whose preconceived notions won't affect the perception of the phenomenon. This must be done with care.

8 0

3 years ago