Aversion to risk or a high tolerance for risk

Assignment Help Financial Management

Reference no: EM13868461

Given your individual risk profile, be it an aversion to risk or a high tolerance for risk; and, the current relatively low level of interest rates would you invest today in an asset, like a US Government Bond, that has a long term fixed cash flow associated with it? Remember to consider your investment time frame and investment purpose when setting forth your investment opinion

Reference no: EM13868461

Questions Cloud

Evaluating two different silicon wafer milling machines : You are evaluating two different silicon wafer milling machines. The Techron I costs $225,000, has a three-year life, and has pretax operating costs of $58,000 per year. The Techron II costs $395,000, has a five-year life, and has pretax operating co..

Playing the stock market is like gambling : Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.

Concerned with amount of assets reported on balance sheet : You work as an accountant for a small land development company that desperately needs additional financing to continue in business. The president of your company is meeting with the manager of a local bank at the end of the month to try to obtain thi..

What is the required return for this portfolio : Your client decides to invest $1.4 million in Blandy stock and $0.6 million in Gourmange stock. What are the weights for this portfolio? What is the portfolio's beta? What is the required return for this portfolio?

Aversion to risk or a high tolerance for risk : Given your individual risk profile, be it an aversion to risk or a high tolerance for risk; and, the current relatively low level of interest rates would you invest today in an asset, like a US Government Bond, that has a long term fixed cash flow as..

Ebit-eps break-even analysis : EBIT-EPS break-even analysis –this is algebraic formulas, Home Depot Inc (HD) had 1.70 billion shares of common stock outstanding in 2008. Whereas Lowes companies Inc. (LOW) had 1.46 billion shares outstanding.

Bonus versus stock : The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company’s stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

What is the current market price of the bonds : Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 8.11 percent coupon rate and paid interest annually. It is now 19 years later. The current market rate of interest on the Bright Sun bonds is 9.08 percent..

Spite of the fact that first restaurant has negative NPV : You are considering introducing a new Tex-Mex Thai fusion restaurant. The initial outlay on this new restaurant is $6.9 million and the present value of the free cash flows (excluding the initial outlay) is $4.9 million, such that the project has a n..

User Account

All Pages