User Account

All Pages

How will the given recommendation impact the client

Assignment Help Finance Basics
Reference no: EM131086587

Financial advisor

As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.

The table below shows information about the performance of stocks A and B last year.

 

Return

Standard Deviation

Stock A

15 %

8.3%

Stock B

14%

2.1%

As a financial advisor, are there factors other than return and risk that should be considered in making this decision?

Based on these factors, what stock would you recommend to the client?

What reasons will you convey to your client to justify your decision in recommending this stock?

How will this recommendation impact the client?

Reference no: EM131086587

Questions Cloud

A wide range of budgeting options available to managers : As you have been introduced to this week, there is a wide range of budgeting options available to managers throughout the organization (including HR managers), and it is crucial to be able to differentiate between the various types and purposes of..
What is taxable income : What type of tax rate structure  does the U.S tax system apply? What are the individual tax forms, and what factors are used to determine which one to use? What is taxable income, and how is it determined?
Analyze cybersecurity laws that will impact organization : Analyze cybersecurity laws that will impact this organization based on the type of organization (for example, public, private, government, or nonprofit).
Recruitment policy of the company : 1. What is wrong with the recruitment policy of the company? 2. Why did Mr. Sashidhar's resignation surprise the General Manager?
How will the given recommendation impact the client : What reasons will you convey to your client to justify your decision in recommending this stock? How will this recommendation impact the client?
Process of finding possible candidates : Recruitment refers to the process of finding possible candidates for a job or function. What are the limitations of Internal sources of recruitment?
Health insurance portability and accountability act : The Health Insurance Portability and Accountability Act of 1996, requires HHS to establish guidelines, key principles and national standards for the handling of electronic healthcare transactions.
Missing in the company selection process : While selecting employees, an organization is not giving any priority to disabled candidates, weaker sections in the society and even women. Identify the values missing in the company's selection process and also suggest a remedy.
What were my assumptions about ethics and morality : What were my assumptions about ethics and morality before coming to this course and have these changed and why and what were my assumptions about the nature and purpose of business activity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the investments should risk-averse investor prefer

Based on the total risk of return, which of the investments should a risk-averse investor prefer?

  Create one additional administrative agency

Congress has decided that it has the resources to create one additional administrative agency. You have been appointed to create the agency. What will the agency regulate? List the primary functions of all administrative agencies. How will your ne..

  In what ways is preferred stock like debt in what ways is

in what ways is preferred stock like debt? in what ways is it like common

  Compute the inventory turnover ratio

Bowa Company's days sales outstanding is fifty days. The corporation's accounts receivable equal $100 million and its balance sheet shows inventory equal to $125 million.

  Discuss a case in which you feel that the market price

Discuss a case in which you feel that the market price of a stock was driven by a fad and not fundamental value. Explain how the bursting of the Stock Market Bubble in 2001 may have led to the Housing Bubble.

  Star corporation issued 5 million of preferred stock the

star corporation issued 5 million of preferred stock. the flotation cost was 10 percent of gross proceeds. the dividend

  What is babcock times interest earned

What is Babcock's times interest earned, if its total interest charges are $20,000, sales are $220,000, and its net profit margin is 6 percent? Assume a tax rate of 40 percent.

  The firm can sell a 15-year 1000 par value 8 percent bond

a firm has determined its optimal structure which is composed of the following sources and target market value

  What is the optimal capital budget

Project A has a cost of $50 million and an IRR of 14%; project B has a cost of $70 million and an IRR of 16%; and project C has a cost of $35 million and an IRR of 6%. What is the Optimal Capital Budget?

  Which investor bonds are better deals for savers

Suppose there are two investors. one has a project to build a factory; the other has a project to visit a casino and gamble on roulette. which investor has a greater incentive to issue bonds? which investor's bonds are better deals for savers?

  What is the standard error of the mean

If we select a random sample of 50 households, what is the standard error of the mean?

  What is its cost of equity in this case

Current the risk-free rate is about 4.5%, and the return on the S&P 500 (the market proxy) is 12.7%. The firm's beta is currently estimated to be 1.65.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd