<span>
<span>True.
Risk in investment can be defined as the possibility that the investor may
lose a big portion or all of the initial investment or make very high returns
in a short period. Risk which is often likened to volatility dictates that
the higher the volatility the higher the chances of returns. Speculative
investments such as leveraged ETFs(commodities such as gold, oil, silver),
options, venture capital trusts are considered high risk and often so offer
handsome returns or cost the investor all or even more of their initial
capital. It is however important to note that high risk does not
automatically translate into high returns. The intrinsic value of the
investment vehicle among other factors need to be considered in depth to
determine if the investment is worth the risk</span></span>
Changes to anything in the higher up corporate areas
Answer:
$52.75
Explanation:
the discount rate for this question was not provided. the discount rate used is 10%
Value of the stock in year 1 and 2 = 0
value of the stock in year 3 = $1.25
value of the stock in year 4 = ($1.25 x 1.22) / 1.10^4 = $1.04
value of the stock in year 5 = ($1.25 x 1.22^2) / 1.10^5 = $1.16
value of the stock in perpetuality = ($1.25 x 1.22^2 x 1.06) / (0.1 - 0.06) = $49.30
Value of the stock today = $49.30 + $1.16 + $1.04 + $1.25 = $52.75
Answer: The central limit theorem is important in statistics because if the variable is larger, the sample distribution of the mean will be normal regardless of how the population size is.
Explanation: The central limit theorem is also referred to as CLT. The CLT will fluctuate as different variables are added while trying to achieve normal distribution for their variables. When trying to find out the equal population, different variables are added to test out the theories.
