Best classified as unsystematic risk

Assignment Help Financial Management
Reference no: EM13876243

Which one of the following is best classified as unsystematic risk?

a. a sudden decline in national exports

b. a sudden increase in the inflation rate

c. an unexpected decline in the sales of a firm

d. an unexpected increase in interest rates

e. an unexpected recessionary period

Reference no: EM13876243

Questions Cloud

Calculate the range of local oscillator frequency : A super heterodyne receiver has if IF of ( MHz and tunes the frequency range from 50 to 60 MHz. The mixer uses low-side injection of the local oscillator signal. Calculate the range of local oscillator frequency.
Mail-order pharmaceutical business on the west coast : Drugs 'R Us operates a mail-order pharmaceutical business on the West Coast. The firm receives an average of $642,000 in payments per day. On average, it takes 7 days for the firm to receive payment, from the time customers mail their checks to the t..
Angular acceleration of the paper roll : In a continuous printing process paper is drawn into the presses at a constant speed v Denoting by r the radius of the paper roll at any given time and by b the thickness of the paper, derive an expression for the angular acceleration of the paper..
What is the companys new required rate of return : Porter Plumbing's stock had a required return of 10.50% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate an..
Best classified as unsystematic risk : Which one of the following is best classified as unsystematic risk?
The standard deviation of portfolio : The standard deviation of a portfolio:
Prepare a variance analysis for direct materials : Assume that Timekiller, Inc., manufactures a new electronic game console. The current standard costs sheet for a game console follows:
Portfolio expected return and standard deviation : You are combining a risky asset with an investment in risk-free U.S. Treasury bills with one year to maturity. The U.S. Treasury bills offer a 4 percent rate of return. The risky asset has an expected return of 8 percent and a standard deviation of 2..
What is the yield to maturity of bond : A Japanese company has a bond outstanding that sells for 85 percent of its ¥100,000 par value. The bond has a coupon rate of 4.4 percent paid annually and matures in 15 years. What is the yield to maturity of this bond?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current value of APIs common stock

The board of directors of API, a relatively new electronics manufacturer, has decided to begin paying a common stock dividend to increase the attractiveness of the stock in the free market. The company currently has a beta of 1.5, the rate of return ..

  Determined that the hypothetical cash flows generated

GE has determined that the hypothetical cash flows generated by this purchase would be of similar riskiness to its own total asset cash flows. You are an original owner of a publicly traded food service company called Smith’s Foods (SF). Your company..

  Gains from investments are taxes as ordinary income except

All of the following gains from investments are taxes as ordinary income except:

  Type of company would the change be more valuable

The government is considering a proposal to allow even greater accelerated depreciation deductions than those specified by MACRS. For which type of company would the change be more valuable, a company facing a 10% tax rate on one facing a 30% tax rat..

  Relationship could be influenced by the citizens of country

Who are the major policy makers for the Federal Reserve System and how do they rise to such an influential position? How do these policymakers influence national economic objectives? Refer to Figure 5.1 on page 100 of the textbook. What part of this ..

  What is the volatility of the risk-free security

Suppose that the return on a risk-free security is 5 percent. The expected return on the market portfolio is 16 percent and the volatility of the market portfolio is 22 percent What is the volatility of the risk-free security? What is the correlation..

  What is jensens cost of preferred stock

Jensen's Travel Agency has 8 percent preferred stock outstanding that is currently selling for $55 a share. The market rate of return is 10 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock?

  Estimated monthly sales-what is the amount of the collection

Westover Products has the following estimated monthly sales: February $8,100, March $8,600, April $9,500 & May $11,200. The accounts receivable period is 45 days. What is the amount of the collections in May? Assume each month has 30 days.

  What is annualized return on this investment

Suppose you buy stock at a price of $83 per share. Three months later, you sell it for $89. You also received a dividend of $.38 per share. What is your annualized return on this investment?

  What will be the market price of these bonds

What is the par value today and what will it be three years from today -  Write down the current prime rate, 15-year mortgage rate, the 3 month T-Bill rate and the 5-year T-Bond rate (for the USA). Are you surprised?

  Though the real estate market has been depressed in some

though the real estate market has been depressed in some countries due to the aftermath of the global financial crisis

  Covered as a workers compensation claim

It’s the end of the summer and your firm has its annual Family Picnic Day on the Saturday of Labor Day weekend. It is a big event: games for kids, a magician who makes balloon animals, tons of great food, kegs of beer, a band for musical entertainmen..

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