Compensates the investor for the risk associated

Assignment Help Other Subject
Reference no: EM13945470

Investments are based on the belief that the rate of return justifies or compensates the investor for the risk associated with that particular investment. The risk associated with this investment is associated with the chance that a loss will be incurred. Or, to put it another way, the greater the chance of a loss the more risky the investment. Therefore, some statistical measures of the risk involved with an investment are necessary before the investment is made.

Questions: Address all of the following questions in a brief but thorough manner.

• What is the Expected Rate of Return on an investment and what does it tell us about the probability of the risk involved with a particular investment?

• How could the required rate of return of an investment be estimated?

• In terms of risk, what are the advantages (and/or disadvantages) of a well-diversified portfolio? The final paragraph (three or four sentences) of your initial post should summarize at least the one or two key points that you are making in your initial response. Your posting should be the equivalent of 1 to 2 single-spaced pages (500-1000 words) in length.

Reference no: EM13945470

Questions Cloud

Depreciation calculated under the double-declining : Prepare the adjusting entry that would be made in 2014 to record the depreciation calculated under the double-declining balance method
Specify the nature of the interrelationships : Specify the nature of the interrelationships between the federal, state, and local government, the private sector, and nongovernmental organizations as outlined in the National Planning Frameworks and the five (5) preparedness mission areas in the..
Define benthic zone define the term ecological factor : Define benthic Zone? Define the term ecological factor? Name only one intracellular parasite? What is biome? Name the type of interaction seen between whale and barnacles growing on its back?
First order differential equation : The virus is spread through contact between sick and well members of the population. Let P be the proportion of the population that has contracted the virus. The proportion of the population that has been infected can be expressed by the first ord..
Compensates the investor for the risk associated : Investments are based on the belief that the rate of return justifies or compensates the investor for the risk associated with that particular investment. The risk associated with this investment is associated with the chance that a loss will be i..
What is the implication for the investor : Do leading indicators tend to give longer warnings before peaks or before troughs? What is the implication for the investor?
Indeed by the second world war : By mid-century, indeed by the Second World War, was a strong reaction against the pretentions of the Moderns. Artists of this newer generation pursued a more democratic, pluralistic mode for poetry and the novel.
Case study involving the allied group : Note: The course project assignments are based around a case study involving the Allied Group. The main scenario is provided, below, in the Week 1 instructions. The assignments will progress from one week to the next during the course. You are to ..
Analyzing the dividend policies of various companies : What is your estimate for your company's dividend per share next year? Please justify why you made that decision - Describe the purpose of the report and provide a conclusion.

Reviews

Write a Review

Other Subject Questions & Answers

  Write an initial substantive response of 150 words in

write an initial substantive response of 150 words in length. begin your response with a restatement of the

  Article on online newspaper or magazine

Review the Editorial or Opinion pages(s) of an online newspaper or magazine and select an article that interests you. Copy and paste the article into your original post and summarize the article. Determine if the argument (opinion/point) is developed..

  Theory contributing to international conflict

What do the realist, liberal/ institutional and constructivist approaches to theory contribute to international conflict?

  Analyze the federal acquisition regulation

Analyze the Federal Acquisition Regulation (FAR), and conclude whether or not these regulations overall offer adequate protection of the collective buying power of the American people. Prepare an argument in support of your position.

  Research principles to the interpretation of content

Apply research principles to the interpretation of content of published research studies. Last week you developed a PICO(T) question for your significant clinical issue

  Putting things together

The principles of Unity and Variety apply to all music, regardless of composition style or historical period.

  Relationship between the system and lifeworld

According to Habermas, what is the evolutionary relationship between the system and lifeworld? (Be sure you understand and can define these two concepts) What factors account for this evolution? How does the evolution transform the relationship of..

  Objectives, functional tactics, and action items

Although objectives, functional tactics, and action items are included in many implementation plans, why do some organizations have a difficult time reflecting the plan they create?

  Major structural and functional dynamics

The major structural and functional dynamics of your selected ecosystem. How humans may have affected the cycling of matter in ecosystems, includingeffectsto the nitrogen, phosphorus, or carbon cycle

  Personally believe ethics are essential required

What are the most important areas of business responsibility that you personally believe ethics are essential required. How is it fair in real life business?

  Described locomotor development as proceeding

Myrtle McGraw described locomotor development as proceeding in a fixed sequence of stages. Briefly descibe the developmental changes she catalogued and discuss her explantion for that.

  Describe an integrated or eclectic treatment system

Describe an integrated or eclectic treatment system that you believe would be especially effective in addressing the needs of multicultural clients. Identify the basic go.als, assumptions, and strategies of your new treatment system

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