Actually be worse than a return

Assignment Help Financial Management
Reference no: EM13947176

A return of 15 percent might actually be worse than a return of 10 percent.

A. In a bull market

B. In a bear market

C. On a risk adjusted basis

D. More than one of the above

Reference no: EM13947176

Questions Cloud

What are arithmetic and geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, –2 percent, and 13 percent? List the arithmetic answer first.
By using dollar cost averaging : By using dollar cost averaging
Federal income tax on investment income and capital gains : Federal income tax on investment income and capital gains of a mutual fund
Portfolio return-mutual fund is greater than market return : If the portfolio return on a mutual fund is greater than the market return, but the Sharpe and Treynor measures are equal, then the fund manager's performance is
Actually be worse than a return : A return of 15 percent might actually be worse than a return of 10 percent.
Analysts estimate that the stock has beta : Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64, and ZZZ-Best consistently pays an annual dividend of $13. Analysts estimate that the stock has a beta of 1.12. The current risk-f..
Entities is most likely to use duration for hedging purposes : Which of the following entities is most likely to use duration for hedging purposes
Expiration dates in the option market : Expiration dates in the option market
Effect of taxes-find the financial break-even quantity : Consider a project with the following data: accounting break-even quantity = 11,250 units; cash break-even quantity = 10,000 units; life = seven years; fixed costs = $200,000; variable costs = $64 per unit; required return = 10 percent. Ignoring the ..

Reviews

Write a Review

Financial Management Questions & Answers

  Find cost of debt - estimate cost of equity

How you estimated the percentage of capital that comes from debt, and common equity - find cost of debt

  What was randys net profit on the given option

The strike price was 1.45 euros, and the spot rate at the time the option was exercised was 1.46 euros. Assume there are 31 250 units in a British pound option. What was Randy's net profit on this option?

  Appropriate cost of capital to evaluate the business

Verano Inc. has two business divisions - a software product line and a waste water clean-up product line. The software business has a cost of equity capital of 11% and the waste water clean-up business has a cost of equity capital of 6%. What is the ..

  Investors attempt to neither buy nor sell shares of asset

You have come across an asset that pays no dividends but has an expected price of $100 an year from now. The correlation of this asset with the market portfolio is believed to be 0.5. The standard deviation of the return is believed to be 30%. Accord..

  Calculate the number of new customers

A local dental practice decides to run a Groupon campaign. The campaign offered $350 worth of dental services (such as teeth whitening) for $145. For the total campaign, 255 coupons were sold. Calculate the number of new customers.

  What was the average real risk premium

You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –25.8 percent, 14.2 percent, 31.4 percent, 2.6 percent, and 21.6 percent. The average inflation rate over this period was 3.26 percent and the average T-b..

  Requires an initial cash outlay

AXY requires an initial cash outlay of $675,000 for equipment. You expect to spend an additional $45,000 in the first year to cover costs as the project will produce negligible cash inflows for that year. During years 2 through 6, you expect to recei..

  Financial sense-what is break-even cost per kilowatt hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.39 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs ..

  Money will be saved for retirement

Waldo expects to receive the following payments: year 1 = $50,000; year 2 = $28,000; year 3 = $12,000. All of this money will be saved for his retirement. If he can earn an average annual return of 10.5 percent, how much will he have in his account 2..

  Determine amounts of non operating assets-financial claims

Determine the amounts of non operating assets and financial claims related to the retiree health and life benefits plans and pension plans that would be included in a valuation of GE.

  What is the effective annual rate of interest

The terms of the sale were 4/9, net 36. What is the effective annual rate of interest?

  What is the future value-simple rate of interest

What is the future value of $12 deposited today in 5 years when earning 6% simple rate of interest?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd