Answer:
Efficient frontier analysis closely resembles a graphic system that breaks down risk performance and will show three levels. The return or investment of low, medium and high risk can help in the decision-making process. EFA reminds me of one of my favorite TV shows, Shark Tank. In Shark Tank you will see "sharks" or investors who choose to invest in a company, usually new companies, and often these investments have a high risk, but they could also have a high rate of return. As with most things, there are some limitations with the use of an efficient border analysis. A common limitation for EFA is the lack of reality that the return will always follow a distribution flow. EFA is not an exact science; It is difficult to identify and disaggregate. Stocks are a good example of EFA limitation. Investment actions are difficult to predict and preserve because there is a lot of unpredictability in the stock market.
NOTE: Explanation is in the answer.
Answer:
The answer is 6.17%.
Explanation:
We apply the Dividend Model for solving the questions.
Denote g as the constant dividend growth rate after 3 years which needs to be found.
The principle in the Dividend model is: Current share price = Projected present value of all expected future dividend discounted at company's cost of equity rs =16%.
Thus Current share price = Present value of Dividend paid in Y1 + Present value of Dividend paid in Y2 + Present value of Dividend paid in Y3 + Present value of dividend perpetuity growth after Y3.
=> 51 = (3 x 1.25) / 1.16^1 + (3 x 1.25^2)/ 1.16^2 + (3 x 1.25^3)/1.16^3 + [3 x 1.25^3 x (1+g)]/(0.16-g)/1.16^3 <=> [5.8594 x (1+g)]/(0.16-g)/1.16^3 = 40.5298 <=> [5.8594 x (1+g)]/(0.16-g) = 63.2628 <=> 5.8594 + 5.8594g = 10.1220 - 63.2628g <=> 69.1222g = 4.2626 <=> g = 6.17%.
Thus, the constant rate the stock's dividend expected to grow after Year 3 is 6.17%
Answer: i dont know. sub to gametoons!
Explanation:
Answer: 0.2
Explanation:
Income elasticity of demand refers to the amount that the quantity demanded for a good changes by in response to a change in income.
The formula is therefore:
= Percentage change in quantity demanded of Peanut butter / Percentage change in income
= 2% / 10%
Income elasticity of demand = 0.2
Answer:
A) considers only the amount of daily trading volume
Explanation:
On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price.