Hedge funds pool investors money

Assignment Help Finance Basics
Reference no: EM131757097

Like mutual funds, hedge funds pool investors' money and invest the money in an effort to make a positive return. Hedge funds typically have more flexible investment strategies than mutual funds. Many hedge funds seek to profit in all kinds of markets by using leverage.

Please assist with response to discussion comment?

Reference no: EM131757097

Questions Cloud

What is the firms cost of equity : The market price of the stock is $32.50 and the growth is 8.5 percent. What is the firms cost of equity?
Front load commission charge : The front load commission charge is 3% deducted upfront from the original funds invested. The annual fund management fees of 0.2
Compensating balance requirement : Calculate the APR and r(EAR) assuming the loan (a) has no compensating balance requirement and (b) has a 20 percent compensating balance requirement
Principally deposits for a bank and money : Finance companies make a profit by borrowing money at a rate lower than the rate at which they lend. This is similar to a commercial bank
Hedge funds pool investors money : Like mutual funds, hedge funds pool investors' money and invest the money in an effort to make a positive return. Hedge funds typically have more flexible
What is the financial industry involvement : What is the financial industry involvement in the 401(k) retirement system? What are the pros and cons of this
Maximum monthly charge it should pay for the lock box system : Apsoft receives an average of $125,000 in payments per day. If Apsoft has an opportunity cost of 12 percent, what is the maximum monthly charge?
What is the market value of the bond : A 10-year bond pays annual interest of 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?
What is the value of a share of state street stock : The required rate of return is 11%. The firm expects growth to occur at a constant rate of 6%. What is the value of a share of State Street's stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Confidence interval for the mean difference in heart size

Among 9 females, the mean diameter of the heart was found to be 11 cm with a standard deviation of 1.01. Construct a 95% confidence interval for the mean difference in heart size.

  What are the implications of a change in the return

What are the implications of a change in the return on equity with an increase in debt financing?

  What is peter pretax cost of debt

Peter, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 7.4 percent annually..

  Contract that the old fence

Your client Patricia, has purchased a new unit and you inserted a condition in the contract that the old fence that was falling over had to be replaced.

  Concept of compound interest

Suppose the total expense for your current year in college equals $20,000. Approximately how much would your parents have needed to invest 21 years ago in an account paying 8 percent compounded annually

  Identify an economic crisis or turning point

Identify an economic crisis or turning point that had a significant impact on certain industries in the U.S. Explain why investing in international markets.

  Financial discussion

Discuss two (2) factors that may affect a persons credit score and apply the notion of moral hazard to your response.

  The cost of capital

The Cost of Capital

  The conversion price is 25 a what is the conversion ratio

percentage conversion premium. a 1000 bond is issued at par. the market price of the common stock at the issue date

  Suppose that you have a mortgage on your house

Suppose that you have a mortgage on your house. You make monthly payments. Your rate of return per month is 1.5%. What is the APR on your loan?

  For this and the next 2 questionsyour brother just

1.for this and the next 2 questionsyour brother just graduated from high school and is seeking your advice as to

  Discounted payback period

A firm wants to get their money back ASAP on a project. a) If the company's cost of capital is 10%, what is the discounted payback period on the following project:

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