Compare the arithmetic with the geometric mean

Assignment Help Financial Management

Reference no: EM131572176

Compare the arithmetic with the geometric mean (average return).

Define risk premium, and explain how it has varied during the past. Include your expectation of an average value for risk premium for the next three (3) years.

You are interested to buy 100 shares of stock at $ 65 per share. The initial margin is 60%. Calculate the cash that you need.

You have $10,000 ready cash for investment and you are interested to use a margin account with an initial margin of 70%. Each share of stock is priced at $ 50 per share. Calculate the number of shares you can buy using your entire cash and the amount you can borrow, given the initial margin stated in this problem.

Reference no: EM131572176

Questions Cloud

How you can incorporate this knowledge into your future : Which of the therapeutic forces discussed in this week's readings do you think are the most important for successful group outcomes?

Calculate the discounted expected claim cost per policy : Assume claims are paid one year after premiums are received and that the interest rate is 6 percent. Calculate the discounted expected claim cost per policy.

Securities exchange act-north american free trade agreement : The Securities Exchange Act made provision for the establishment of exchanges the establishment of the North American Free Trade Agreement

Conflict typically appears when a group is in transition : State several forms of conflict you can expect in the types of groups you will lead. Consider group members suffering with substance use disorders.

Compare the arithmetic with the geometric mean : Compare the arithmetic with the geometric mean (average return). Define risk premium, and explain how it has varied during the past.

Certificate of deposit that pays compounded interest : Find the future value of a $195,000 Certificate of Deposit that pays compounded interest every three months at the rate of 8% per year.

Net operating income is needed to cover debt service : What percent of net operating income is needed to cover the debt service obligation?

Explain the purpose of financial statement : All sales are collected when the sale is made and all expenses are paid when the expense is incurred.

Would an incoming message be rejected as spam : Suppose that a Bayesian spam filter is trained on a set of 500 spam messages and 200 messages that are not spam. The word "exciting" appears in 40 spam message.

User Account

All Pages