Explain the effort to stimulate economy

Assignment Help Finance Basics
Reference no: EM133115713

Could you rank the asset classes accoriding to their levels of risks. Highest risk will be the first one and the lowest risk will be the last one. If government send you a check of $10,000 (as an effort to stimulate economy), which asset class would you choose? Why would you choose that asset class.

These are the asset classes according to their level of risk. I just want to double check and make sure they are right and what you might invest in if you got 10,000.

Common stocks, futures contract, call and put options, preferred stock, mortgage back securities, commercial paper, brokers, corporate bonds, international bonds, municipal bonds, repos and reserves, treasury bonds, euro dollars, treasury bills, bankers acceptance, certificate of deposit.

Reference no: EM133115713

Questions Cloud

What is the remaining margin in the account : Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50%. (The margin accoun
What amount can the taxpayer claim as an ordinary : He paid $25,000 to the Captain of the vessel La Merced. What amount can the Taxpayer claim as an ordinary and necessary expense for taxable year 20X1
Categorize financial statements account : How do you know on a categorize financial statements account what falls under balance sheet and an income statement
Explain inter-cluster and intra-cluster distances : Explain inter-cluster and intra-cluster distances and their relationship when used to evaluate clustering results and Compare the advantages and disadvantages
Explain the effort to stimulate economy : Could you rank the asset classes accoriding to their levels of risks. Highest risk will be the first one and the lowest risk will be the last one.
Compute the cash flows from operating activities : Power and Surge reported sales of $330,000 and $200,000 and cost of goods sold of $130,000 and $95,000, Compute the cash flows from operating activities
What is the effect of the current account surplus : Assume that a small open economy with complete capital controls is running a current account surplus of $800 million a year. Answer the following questions.
Compute the euclidean distance between the two objects : What is a Perceptron and what is Multilayer perceptron? Illustrate the structure of aperceptron and multilayer perceptron
Economy with a fixed-exchange-rate system : Consider a small open economy with a fixed-exchange-rate system and complete capital controls. Analyze the effects of a rise in foreign prices on the domestic e

Reviews

Write a Review

Finance Basics Questions & Answers

  What minimum average collection period is required

Klein's Tools estimates that 80% of its customers will take the 2% discount. If sales are expected to rise to 37,000 units per year and the firm has a 15% required rate of return, what minimum average collection period is required to approve the cash..

  Calculate the enterprise value of heavy metal

Estimate the enterprise value of Heavy Metal. If Heavy Metal has no excess cash, debt of $294 million, and 37 million shares outstanding.

  How large can your mortgage loan be

After doing some budgeting, you've decided that the largest monthly mortgage payment you would be comfortable with is $1,450. If the bank is charging 6% annual

  What is the break-even point in pairs of shoes

Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $58. Footwear Inc. incurs fi..

  What does double taxation of corporate income mean

Provide a substantial written response of 250-300 words addressing following topic while providing at a minimum 2 scholarly/govt references.

  Expected eps under both financing options

Find out the expected EPS under both financing options at the given EBIT levels of Rs. 2 crores and Rs. 7.5 crores. What should be choice of the company

  Which of given put options would recommend for purchase

Mystery at Baker Street. Arthur Doyle is a currency trader for Baker Street, a private investment house in London. Baker Street's clients are a collection.

  Home depot total capitalization amounted

At the end of 2011 Home Depot's total capitalization amounted to $28,992 million. In 2012 debt investors received interest income of $635 million. Net income to shareholders was $4,526 million. (Assume a tax rate of 35%.)

  What is value of the interest tax shield when firm borrrows

What effect does financial leverage have on the expected level and the variability of a firm's EPS and ROE?

  What is the current value of the stock

If the required rate of return is 16.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.)

  Company pretax cost of debt-icu window inc

Hoolahan Corporation's common stock has a beta of 1.19. Assume the risk-free rate is 5.4 percent and the expected return on the market is 12.9 percent.

  Determining a company ratio

In your answer include a discussion of what the P/E ratio represents and what factors play a role in determining a company's ratio.

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