1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fofino [41]
3 years ago
15

What might be reasons that small-company stocks earn higher returns than large-company stocks on average?

Business
1 answer:
Maslowich3 years ago
3 0

Answer:

small company stocks are less safe and liquid and is more exposed to inflation  

Explanation:

From the period of 1926 to 2010, the small company stock had the highest average return of securities as compared to the company stocks of large company. Some of the reasons for the highest return on average of a small company stock than the small company stock are :

1. The small company stocks are less safe.

2. The small company stocks are less liquid.

3.They are more exposed to the inflation.

You might be interested in
Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $16
nalin [4]

Answer:

a. Pay back period is 4 years and 18 days

b. Net present value is - $5,909. Since the NPV is negative, the project should be rejected.

Explanation:

Note: See the attached for the calculation tables of a and b.

a. Pay back period = 4 years and [($2,565/$51,244)*365 days] = 4 years and 18 days approximately.

Download xlsx
3 0
3 years ago
The duties of the ______ involve reviewing the organization's financial objectives and major strategies, providing advice to top
Svet_ta [14]

It should be noted that  duties of the board of directors involve reviewing the organization's financial objectives and major strategies in organization.

<h3>Who were board of directors?</h3>

board of directors  can be regarded as the elected group of individuals that represent shareholders.

They provide advice to top management, and reviewing systems to ensure compliance with laws and are governing body .

Learn more about board of directors at;

brainly.com/question/4771644

5 0
2 years ago
Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note that the
elena55 [62]

Answer: Net Asset Value = 1950

Explanation:

Assets = $225 million

Liabilities = $30 million

Shares outstanding = 10 million

We can compute the Net Asset Value, using the following formula:

<em>NAV\ per\ share= \frac{Assets - Liabilities }{Outstanding\ Shares}</em>

<em>NAV\ per\ share = \frac{225 - 30}{10}</em>

<em>NAV per share = 19.5</em>

<em>Therefore, the NAV of 100 share is 1950</em>

6 0
3 years ago
36. A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such
Sedaia [141]

Answer:

a.

Explanation:

Based on the scenario being described within the question it can be said that these processes are known as outsourcing. This term or process is when a company hires another company in which the hired company agrees to be responsible for an activity or process that could be done internally but which the company has decided not to. Such as in this scenario since a third party (completely unrelated company) is handling all of the logistics division of the company.

3 0
3 years ago
Read 2 more answers
Sales of hot dogs at the corner of 24th and Lex. follow the following patterns: 40% of the days, 80 are sold; 50% of the days, 9
Korvikt [17]

Answer: 90%

Explanation:

Cycle Service Level refers to the expected probability by which a manufacturer meets the demand for a particular product and is not being stockout.

In this case,

40% of the days, 80 are sold;

50% of the days, 90 are sold

10% of the days; 100 are sold.

Since the vendor plans to stock 90 each day, then the vendor will meet demand during 40% of the days, when 80 are sold; and during 50% of the days, when 90 are sold.

Therefore, the expected CSL is the vendor targeting will be:

= 40% + 50%

= 90%

5 0
2 years ago
Other questions:
  • Last year, new era cap company (buffalo, ny celebrated its 90th anniversary in business as a privately held company that makes a
    5·1 answer
  • Transactions are posted into ledger account from ---
    8·1 answer
  • Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,730,000. There is a 3% commis
    13·1 answer
  • In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the
    5·1 answer
  • Which reasons can be fixed by having a money plan?
    15·1 answer
  • Suppose that currently the government provides everyone with a guaranteed income of $12,000 per year, but this benefit level is
    8·1 answer
  • General Widget partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $
    12·1 answer
  • Which of the following hitches are allowed home depot
    11·1 answer
  • ________ refers to the demand and availability of an occupation.
    6·1 answer
  • 5. One-year interest rates are 2% in the U.S. and 5% in Canada. “Jackie the carry trader” borrows $3,000,000 to execute a carry
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!