Business, 13.11.2019 06:31 xbeatdroperzx
Which of the following statements is correct? a. if an investor buys enough stocks, he or she can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. therefore, if a portfolio contained all publicly traded stocks, it would be essentially riskless. b. a stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock. c. a security's beta measures its non-diversifiable, or market, risk relative to that of an average stock. d. portfolio diversification reduces the variability of returns (as measured by the standard deviation) of each individual stock held in a portfolio. e. the required return on a firm's common stock is, in theory, determined solely by its market risk. if the market risk is known, and if that risk is expected to remain constant, then no other information is required to specify the firm's required return.
Answers: 3
Business, 22.06.2019 01:10
Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?
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Business, 22.06.2019 10:50
Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?
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Business, 22.06.2019 11:00
What is the correct percentage of texas teachers charged with ethics violations each year?
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Business, 22.06.2019 12:00
Identify at least 3 body language messages that project a positive attitude
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Which of the following statements is correct? a. if an investor buys enough stocks, he or she can,...
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