Answer:
A) have zero alphas
Explanation:
Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.
This is why the CAPM model only considers beta in its calculation.
False is the correct answer
Answer:
Increased
Explanation:
The current ratio is calculated by dividing the current assets with the current liabilities. As the receivable is known as a current asset, the increase in receivable will no doubt increase the current asset, and as we all know when the numerator increases the final result also increases. The same case in quick ratio as the receivable increase the numerator will also increase and due to that the final result will also be increased.
Answer:
C) maturity
Explanation:
The four stages of the product life cycle are:
- Introduction Stage
-
Growth Stage
-
Maturity Stage: at this stage the product is already well established and its sales growth rate slows down. The highest sales level are achieved at this stage. This is also the stage at which the product faces the most competition, so the companies must modify and improve their products.
-
Decline Stage
Answer:
3.63yrs
Explanation:
CExplanation: C) Investment / Annual cash flows$2,900,000 / 800,000 = 3.63 yrs
