What is risk aversion, and how is risk aversion related to the expected return on a stock

Q: If interest rates increase because of a previously unanticipated inflation rate risk?     long-liv...

A: Answer -  If interest rates increase because of a previously unanticipated inflation rate risk as a ...

Q: 2. Jim Johnson, the CEO of Acme Imports Company, is focused on his next growth market. After extens...

A: The Expected monetary value analysis (EMV) is an important concept in project risk management which ...

Q: ires a 150,000 minimum cash balance on it checking account. based on the control limit model, iut sp...

A: The practise of collecting and managing cash flows is known as cash management.Individuals and busin...

Q: A bond currently trades at P975 on the secondary market. The bond has 10 years until maturity and pa...

A: The yield to maturity of the bond can be calculated with the help of RATE function of Excel

Q: One Corporation has two potential suppliers. Both are supplying the items at similar list prices and...

A: Trade credit: It is an agreement between supplier of goods and buyer where buyer agrees to pay the a...

Q: depreciation expense of $745,000. What was net capital spending for 2014?

A: Net Capital Spending: It refers to the net amount spent by the firm for the purpose of acquiring fix...

Q: The cost of producing a small transistor radio set consists of P23.00 for labor and P 370.00 for mat...

A: Given, The selling price of radio set is P750. Fixed cost P100,000. Labor cost P23 and material is P...

Q: The interest rate observed in the marketplace for a debt instrument?     Observed interest rate    ...

A: Interest rate that is observed in the market place for debt instrument is real rate of interest. Rea...

Q: On January 1, 2020, ABC Corporation invested in P2,000,000 bonds of DEF Company that will mature on ...

A: We have invested today 2000000 on which we have received interest at 10% for the next three years. I...

Q: A farmer borrowed a loan at an interest rate of 50% per annun. In 3 years he has not paid anything a...

A: Owed amount (FV) = 675 Interest rate (r) = 50% Period (n) = 3 Years

Q: JAcad Steel has sold 1,500,000 worth of steel to Megawide Construction. Megawide Construction has pa...

A: Bill of Exchange is the instrument used by entities to have short-term finance where one company def...

Q: Which of the following statements is correct? O Flotation costs under a best-efforts arrangement typ...

A: The process of issuing shares of a private firm to the public in a new stock issue is known as an in...

Q: A no-load (commission-free) mutual fund has grown at a rate of 11% compounded annually since its beg...

A: Future Value of Annuity: It represents the future worth of current periodic annuity payments. It is...

Q: Which approach would most likely be used to appraise an apartment building? O Investment Method Sale...

A: Appraisal is very important in the case of property as appraisal will lead to the approval of loans....

Q: Plz solve it within 30-40 mins I'll give you multiple upvote

A: Note : All the Options mentioned along with the question are incorrect,so we are solving the correct...

Q: At age 35 you start saving for retirement. If your investment plan pays an APR of 6% and you want to...

A: Annuity refers to the payment series of same nominal value which are paid or received at a same inte...

Q: Create a data table that calculates the Future Value of a 401(k) using the following information: Fu...

A: Here we will use the FV function in excel. The syntax is: FV (rate, nper, pmt) where rate = interest...

Q: On January 1, 2021 Tractor Company will acquire a new asset that costs $450,000 and that is anticipa...

A: NPV means PV of net benefits arises from the project over the life of the project. It is computed by...

Q: Sha Ico 3D

A:

Q: investor provides an entrepreneurial firm with the capital that it needs to grow. over and above pro...

A: The investors provide capital to business but alone capital is not sufficient to make business succe...

Q: Stacy's Dress Shop received a $1,130 invoice dated July 16 with 2/10, 1/15, n/60 terms. On July 30, ...

A: As stated, the payment term is 2/10,1/15,n/60. It means if the customer will make payment within 10 ...

Q: You are evaluating the expected performance of two stocks, Alibaba and Bank of China. You gathered t...

A: Expected Rate of Return: It is the return on investment that an investor is  anticipated  to receive...

Q: The degree of operating leverage (DOL) is ___

A: Degree of Operating Leverage: It measures the change in the operating income in response to the cha...

Q: Suppose the market risk premium is 6.8% and the​ risk-free interest rate is 4.5%. Calculate the cos...

A: Cost of capital = Risk-free interest rate + Beta(Market risk premium) where, Risk-free interest rate...

Q: Mrs. Garcia received two offers on a lot that he wants to sell. Ms. Dela Cerna has offered ₱50,000.0...

A: Data given: Ms. Dela Cerna has offered ₱50,000.00 and ₱1 million lump sum payment 5 years from now. ...

Q: Hardware Co. is estimating its optimal capital structure. Hardware Co. has a capital structure that ...

A: CAPM refers to the Capital assset pricing model, under this method cost of equity can be calculated ...

Q: Build Corporation wants to purchase a new machine for $318,000. Management predicts that the machine...

A: Calculate the value of annual depreciation by dividing the purchase value of machine which is $318,0...

Q: What are some benefits of holding FX reserves (recall the Asian financial crisis of 1997)? Are there...

A: FX reserves are assets kept by a country's central bank or monetary authority, and they are commonly...

Q: How much money will you have after 4 years if you deposited P10,000.00 in a bank that pays 6% simple...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Fashion Trends PH is seeking to borrow money to finance the development of its online retailing busi...

A: Present value of future value of money should be equal value of money today or more than that than o...

Q: 8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additi...

A: Initial cost = P 3,000,000 Additional cost every 10 years = P 1,000,000 Annual cost = P 100,000 for ...

Q: Suria hopes to deposit RM3,500 annually in an account that earns 10 percent compounded semiannually ...

A: Future Value The future value is the amount that will be received at the end of a certain period. Th...

Q: Making changes to a firm’s credit policy involves trade-offs. Assuming that all other factors remain...

A: Cash discount means giving discount for the customers who are paying amount immediately or before ex...

Q: f you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate disco...

A: Compouding is a method by which interest amount increases with every compouding period. Compouding c...

Q: For the next five years, the annual dividends of a stock are expected to be P2, P2.10, P2.20, P3.50 ...

A: Year Particulars Amount 1 Dividend 2.00 2 Dividend 2.10 3 Dividend 2.20 4 Dividend 3.50 5 ...

Q: Please see the picture below. I need help making a retained earnings statement, a balance statement,...

A: Retained earnings statement Gross profit margin rate Net profit margin rate

Q: A stock has a beta of 1.13, the expected return on the market is 10.7 percent, and the risk-free rat...

A: Beta (B) = 1.13 Market return (MR) = 10.7% Risk free rate (RF) = 4.6%

Q: The Cost of Capital: Weighted Average Cost of Capital Question 13 of1 Check My Work The firm's targe...

A:

Q: what is the value of the bond.

A: Bond: It is a debt instrument issued by the firm to raise capital from the investors. The bondholder...

Q: What is the accumulated amount of a 8-year annuity paying ₱ 3,838 at the end of each year, with inte...

A: Annual payment (A) = P 3838 n = 8 years r = 4%

Q: The company invested $300,000 on September 30, 20XA at 4% for 4 months. Determine interest revenue f...

A:

Q: Sam Salverri is planning to retire in 15 years. Money can be deposited by 8% compounded quarterly. W...

A: Convert 8% compounded quarterly to its equivalent interest rate for monthly interval. Here, 'R' repr...

Q: If a firm with $49,000 in fixed costs breaks even on 7,000 units, how many units must the firm sell ...

A: Whenever sales generated and costs incurred within a specific period are equal, a corporation breaks...

Q: Shahrul is considering an investment that will generate cash flows of RM800 in the first year, RM500...

A: Interest rate = 10% Year Cash flow 1 800 2 500 3 400 4 700

Q: What is the fair value of the biological assets on December 31, 2021?

A: Biological assets means all type of living assets of the business. It includes livestock such as goa...

Q: 5. Today, an antique car that originally cost $3,773 in 1955 is valued today at $69,500 if in excell...

A: This question requires to find the value of unknown variable using the given values.

Q: If P500 is invested at the end of each year for 6 years at an effective annual interest rate of 7%. ...

A: Periodic Payment = P500 Time Period = 6 Years Interest Rate = 7%

Q: An investment promises two payments of $1000, on dates 60 and 90 days from today. What price will an...

A: Data given:: First payment on 60 days from today = $1000 Second payment  on 90 days from today = $10...

Q: Commercial letter of credit are?     customarily required by importers of their suppliers.     n...

A: A commercial letter of credit  A commercial letter of credit is written on behalf of the customer wh...

Q: Certificate A pays $1100 in three months and another $1100 in sx months Certificate B pays $1100 in ...

A: Discounting is a technique which is used to compute the present value (PV) of future cashflows by us...

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.