Describe the benefits of diversification

Assignment Help Financial Management
Reference no: EM132044613

You have just graduated from your University. Your first day on your new job involves a lot of paperwork including your decision to participate in the company 401K plan. First, should you participate? Second, describe the benefits of diversification if any including adding international stocks to your investment portfolio? You must include a full explanation to support your answer.

Reference no: EM132044613

Questions Cloud

An investor is evaluating two-asset portfolio : An investor is evaluating a two-asset portfolio of the following securities: Stock Expected Return Expected Risk (?) Correlation (?)
Motivations for counter party to enter into currency swap : Discuss the basic motivations for a counter party to enter into a currency swap.
Cash account be used to purchase interest bearing investment : At what cash account balance (upper limit) will funds from the cash account be used to purchase interest bearing investments?
What is the company cost of equity capital : If the risk-free rate is 4.5 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?
Describe the benefits of diversification : Describe the benefits of diversification if any including adding international stocks to your investment portfolio?
How many shares can the firm repurchase : How many shares can the firm repurchase if it issues the debt securities?
The economy booms and the firm maintains all-equity status : If the economy booms and the firm maintains its all-equity status, then the earnings per share (EPS) will be _____.
Project with the operating cash flows : The Windom Co. is considering a project with the following operating cash flows.
Performance of walmart stock to equity benchmark : Compare the performance of Walmart's stock to an equity benchmark such as the S&P 500 or the Nasdaq over the same period.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the percentage return on your investment

What is the percentage return on your investment (ignore interest paid)?

  What is the new yield to maturity on the bond

You buy a(n) 7% coupon, 9-year maturity bond for $970. A year later, the bond price is $1,120. Assume coupons are paid once a year and the face value is $1,000. What is the new yield to maturity on the bond (one year from now)? What is your bond's ra..

  How much of new investment must be financed by common equity

In order to maintain the present capital structure, how much of the new investment must be financed by common equity?

  Compare to the glass-steagall act

How does the Dodd-Frank Act of 2010 compare to the Glass-Steagall Act of 1933?

  What is re-pricing gap if planning period is three months

What is the re-pricing gap if the planning period is 3 months? Calculate the NII if the interest rate is raised from 3% to 4%.

  The method used to calculate operating cash flow

The method used to calculate Operating Cash Flow [OCF] as shown in the videos is the ________.

  Does this mean that the stock has a negative beta

Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio? Explain with your reasoning.

  Bill has decided to begin investing for retirement

Bill has decided to begin investing for retirement. How much will he have in the account after 20 years?

  Current estimated value and growth rate

Last Year's Dividend (Do) $2.80. Growth rate for year 1 (g1) 25%. Current Estimated Value (Po) = If the stock was currently selling for $50, would you buy it yes or no?

  What rate of return do they expect to earn on the stock

If investors believe the growth rate of dividends is 6% per year, what rate of return do they expect to earn on the stock?

  Taxable bond is expected to pay annual interest

A taxable bond is expected to pay annual interest of 5.6%, and a tax-exempt municipal bond is expected to pay annual interest of 2.2%. If your marginal tax rate is 28.0%, and you invest $4,000, how much will you earn (after-tax) if you purchase the t..

  What must the coupon rate be on these bonds

The bonds make semiannual payments. What must the coupon rate be on these bonds (as an APR)?

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