Assume the risk-free rate is 4%. you are a financial advisor and your client has decided to
invest in exactly one of two risky funds, a and b. she comes to you for advice. whichever
fund you recommend she will combine it with the risk -free asset. expected returns are e(ra)
= 13% and e(rb) = 18%. volatilities are σa = 20% and σb = 30%. without knowing your
client’s tolerance for risk, which fund would you recommend? (hint: compute for sharpe
ratio)
Answers: 1
Business, 21.06.2019 22:00, tylerineedhelp
The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?
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Business, 22.06.2019 20:20, martinezarielys17
As you have noticed, the demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. also, the current buyers of flip phones are mainly categorized under laggards. which of the following stages of the industry life cycle is the flip phone industry in currently? a. growth stage b. maturity stage c. decline stage d. commercialization stage
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Business, 22.06.2019 21:40, mackenziemelton26
Which of the following is one of the main causes of inflation? a. wages drop so workers have to spend a higher percentage of income on necessities. b. demand drops and forces producers to charge more to meet their costs. c. rising unemployment cuts into national income. d. consumers demand goods faster than they can be supplied.
Answers: 3
Business, 22.06.2019 22:40, laceysmith2i023
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. use the irr decision to evaluate this project; should it be accepted or rejected
Answers: 3
Assume the risk-free rate is 4%. you are a financial advisor and your client has decided to
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