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3 years ago

Behavioral finance is the study of:_________.

Business

1 answer:

juin [17]3 years ago

7 0

Answer:

D). how investors react to the amount of risk versus the amount of return in securities.

Explanation:

Behavioral finance can be regarded as study involving influence of psychology on investors behavior as well as financial analysts. encompass effects that comes after this on the markets. It explains that investors cannot always described as rational. It should be noted that the Behavioral finance is the study of how investors react to the amount of risk versus the amount of return in securities.

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You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You

lukranit [14]

Answer:

Explanation:

by looking at the prices ,answer d is my estimated answer,im not a finance intern

4 0

3 years ago

The p/e ratio can be interpreted as ""the number of years’ earnings to pay back purchase price"" True or False

ICE Princess25 [194]

Answer:

True

Explanation:

P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.

Price earning ratio= $\frac{market\ value\ price\ per\ share}{earning\ per\ share}$

7 0

4 years ago

If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct?

Lady bird [3.3K]

Answer:

a. liabilities are $32,000

Explanation:

Note: In question part $75,000 shall represent equity, as there are only 3 parts of balance sheet assets, equity and liabilities, if assets are given liabilities is what we need to calculate the missing is equity.

Thus, $75,000 is treated as equity.

In that case we have,

Assets = Equity + Liabilities

$107,000 = $75,000 + Liabilities

Assets - Equity = Liabilities

$107,000 - $75,000 = Liabilities

$32,000 = Liabilities

Therefore, correct option is

a. liabilities are $32,000

7 0

3 years ago

The risk-free rate of return is 4%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficien

Bess [88]

Answer:

the share should sell at $46

Explanation:

We use the CAPM method to know the required return of the capital

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.04

market rate 0.1

beta(non diversifiable risk) 2

$Ke= 0.04 + 2 (0.06)$

Ke 0.16000 = 16%

Now we calculate with the dividends grow model the intrinsic value of the share:

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{4.60}{0.16-0.06} = Intrinsic \: Value$

$4.6/0.1 = $46

3 0

3 years ago

Will make you BRAINLIEST!

finlep [7]

Answer:

The recent loss of 440 manufacturing jobs at Ford Australia has generated a lot of debate about the long-term viability of the Australian car industry, and manufacturing in general. This debate has included arguments that manufacturing is important and needs more government support. It has also seen some commentators argue that Australian’s have no right to expect jobs in manufacturing.

While most of this debate has focused on the automotive manufacturing sector, there is a wider question that needs to be answered. This relates to the issue of whether it is feasible for an advanced economy to grow and prosper without a manufacturing sector?

Explanation:

3 0

3 years ago