Answer:
Timing Risk
Explanation:
Timing risk is a type of investment risks that a trade will not be performed at the best market price.
Answer is given below
Explanation:
type of cash flow activity
a. Redeemed bonds ---------------Fiancing
b Issued preferred stock -----------Fiancing
c. Paid cash dividends --------------Fiancing
d. Net income --------------------------Operating
e. Sold equipment --------------------Investing
f. Purchased treasury stock -------Fiancing
g. Purchased patents ----------------Investing
h. Purchased buildings -------------Investing
i. Sold long-term investments ----Investing
j. Issued bonds ------------------------Fiancing
k. Issued common stock -----------Fiancing
If the required rate of return is 7.2%, no such security shall be purchased.
<h3>What does the required rate of return mean?</h3>
The required rate of return is the expected percentage of returns on investment at the time the investment is made. The required rate of return, in this case, is 7.2%.
The actual returns earned from purchasing the security for $8000 and receiving returns of $3600 are calculated to be around a 3.6% return.
As a result, if the required rate of return on investment is 7.2%, the security should not be purchased.
Read more about the required rate of return here:
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