Defined as secondary market transaction

Assignment Help Financial Management

Reference no: EM131567258

1. If you decide to buy 100 shares of Google, you would probably do so by calling your broker and asking him or her to execute the for you. This would be defined as a secondary market transaction, not a primary market transaction. True False

2. The CAPM is on historic conditions, although in most cases we use expected future data in applying it. Because used in the CAPM are calculated using expected future data, they are not subject to changes in future on volatility. This is one of the strengths of the CAPM. True False

3. The coefficient of variation, calculated as the standard deviation of expected returns divided by the expected return, is a standardized of the risk per unit of expected return. True False

4. Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific, " or events, and their effects on investment risk can in theory be diversified away. True False

Reference no: EM131567258

Questions Cloud

Find the profit obtained by a firm : A key raw material is rationed so that total production must be restricted to 200 units. Find the production levels that now maximize profits.

Positives and negatives of the various forms : What are some of the positives and negatives of the various forms of public subsidies of professional sport franchises/stadiums?

Long-term capital management : In 1998, Long-Term Capital Management (LTCM), a prestigious hedge fund, made highly leveraged bets on the spread between U.S. Treasuries and corporate bonds.

Find the present worth and future worth of this project : raw cash flow diagram for this project(from present till end of year 2050). Find the Present Worth of this project. Find the Future Worth of this project.

Defined as secondary market transaction : This would be defined as a secondary market transaction, not a primary market transaction.

Contribute to an increase in company valuation : What are the main reasons risk management might contribute to an increase in a company’s valuation?

What is the present value of all these cash flows : What is the present value of all these cash flows if the annual interest rate is 6%.

Evaluating capital budget analysis by operating divisions : You are evaluating a capital budget analysis by one of the operating divisions that lists the following cash flows in its analysis.

Discuss the envelope theorem : Define f (x, y, a) = ax2 - 2x + y2 - 4ay, where a is a parameter. For each fixed a ? 0, find the point (x*(a), y*(a)) that makes the function f stationary.

User Account

All Pages