How risky do you consider your human capital

Assignment Help Finance Basics
Reference no: EM133070347

In investments, the lender expects you to repay the loan - but they can't know for sure whether you will or not. They can "secure" their loan against what you borrowed for - house or car etc. For the lender, there is the risk though that they don't get the full value back.

If you invest in shares - you are the last one to get paid. Everybody else gets paid before the shareholder. So they take a big leap of faith!
So debt (bonds, fixed interest securities) is lower risk than shares - but lower returns as well. That's the catch. If you expect high returns you are going to have to stomach higher risk - the roller coaster of returns is steeper.

How risky do you consider your human capital? Is you human capital higher/lower than the average? Why?

Reference no: EM133070347

Questions Cloud

Prepare the journal entry to record issuing the bonds : Carr Corporation issued $68,000 of 6 percent, 9-year bonds on January 1, Year 1, for a price. Prepare the journal entry to record issuing the bonds
Consumer discretionary sector : The table below lists P/E Ratios for some ASX-listed retailers and the average P/E Ratio for the Consumer Discretionary Sector. From this information, what can
Difference between market price and the intrinsic values : Explain which country you believe would have the largest and which country would have the smallest difference between market price and the intrinsic values of s
Compose action plan to present to hr : Discuss which attributes led you to identify this person as a toxic leader. Discuss how you will repair the rift caused by the leader after removal.
How risky do you consider your human capital : How risky do you consider your human capital? Is you human capital higher/lower than the average? Why?
What is the bond yield to maturity : Suppose a 10 year, $1,000 bond with an 8% coupon rate and semi-annual coupons is trading for a price of $1034.74.
What is project a npv : Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. What is Project A NPV
Business values for the organisation : Assessment of business requirements for developing a business plan - Analysis of business plan objectives and financial targets for the business plan
Discuss the stimulus package : Discuss the stimulus package Topic from the current media on a banking perspective. Collect at least three articles from different point of views from such sour

Reviews

Write a Review

Finance Basics Questions & Answers

  Define the importance of the time value of money concepts

Define the importance of the time value of money concepts, including compounding (future value), discounting (present value), and annuities.

  What is the maximum growth rate possible

What dividend payout ratio is necessary to achieve this growth rate under these constraints? What is the maximum growth rate possible?

  What will the new price of the stock be

The Ohio Freight co. common stock is selling for $80 the day before the stock goes ex-dividend. The annual dividend yield is 5.4%, and the dividends are distributed quarterly.

  Find the lower bound price

Assume the price of a non-dividend paying stock is $24, the strike price is $25, Find the lower bound price for an 8-month European call option

  Major charitable organization in north carolina

- Nicole is the director of a major charitable organization in North Carolina.

  Profitability and asset management ratios

You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: net income = $690,000, total debt = $13.9 million, debt ratio = 44%. What is Tikki's ROE for 2008?

  Explain the concept of the sharpe performance measure

Explain the concept of the Sharpe performance measure

  Evaluating a project in erewhon

Year Cash Flow 0 -$ 132,000 1 495,000 2 560,000 3 455,000 4 410,000 All cash flows will occur in Erewhon and are expressed in dollars.

  Deep understanding and critical writing

For each of the statement below, assess whether the statement is TRUE, FALSE or UNCLEAR. Provide an explanation with illustration and/or example

  Determining the amount of the expected disbursements

What is the amount of the expected disbursements for Quarter 3? Assume a 360-day year.

  Compute the return on stockholders equity if the company

Compute the return on stockholders' equity if the company has sales of $20 million and the following net profit margin: a. 3 percent b. 5 percent

  Development and locus of control

Evaluate yourself in terms of cognitive moral development and locus of control by responding to the following questions:

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