Reasons for volatility in the stock market

Assignment Help Business Economics
Reference no: EM131913876

Recently the U.S. Congress passed a Tax-reform bill decreasing the personal, and corporate income tax rates. Generally, stock markets welcome the news of tax cuts. The initial, but short-lived hike in stock indices, was followed by a huge crash in the stock market. What do you think are the likely reasons for this volatility in the stock market? Given the current scenario, what would be your advice to someone, who's in their 60's, and is interested in investing in stocks?

Reference no: EM131913876

Questions Cloud

Ranking the assets based on their expected risk : Rank the following assets based on their expected return. Then repeat the exercise, this time ranking the assets based on their expected risk.
What are some layout impacts of technological breakthroughs : How has the use of the assembly line by the industry changed over time? What are some layout impacts of technological breakthroughs?
Volatility for stock increases the value of option on stock : Explain why an increase in volatility for a stock increases the value of an option on the stock.
Write a summary of the benefits of adopting nists rmf : Write a summary of the benefits of adopting NIST's RMF as the company's risk management framework for IT risk management.
Reasons for volatility in the stock market : Given the current scenario, what would be your advice to someone, who's in their 60's, and is interested in investing in stocks?
Calculate the projects npv and put it in appropriate cell : Complete the spreadsheet by writing the missing numbers in the empty cells. Calculate the project's NPV and put it in the appropriate cell.
Capital gain-yield to maturity remains unchanged : what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?
Systematic risk and not total risk : Why do we contend that only systematic risk and not total risk is important?
What is an ideal value of k for the vehicle silhouettes data : What is an ideal value of k for the Vehicle Silhouettes data? This is a subjective and open-ended question.

Reviews

Write a Review

Business Economics Questions & Answers

  How much would an individual firm produce

The global Propylene industry is perfectly competitive and each producer has the marginal cost function MC = 40-12q+q2 . The corresponding average cost function is AC=40-6q+1/3q2. The market demand curve for propylene is Q=2200-100P. What is the long..

  Offered two gambles

Tim is offered two gambles. With gamble A, he either gains $2 or loses $1 with a 50 percent probability. With gamble B, he either gains $3 or loses $2 with a 50 percent probability. Tim prefers gamble B to gamble A. What can we conclude?

  Considering two alternative plant layouts

You are considering two alternative plant layouts, A1 and A2, to improve its current layout. The cash flows are shown below. The first costs represent the expenses of rearranging the current layout to the alternative new layout and the annual savings..

  Largest source of government revenue

"In the last 5 years the largest source of government revenue has been from individuals and the largest single category of federal government spending has been on individuals." Do you agree? Why or why not? Be sure to provide, where possible, specifi..

  Economic terms and using the ad-as framework

Given the information in the below article, explain, in economic terms and using the AD/AS framework, how Australia avoided negative economic growth

  School to prison pipeline

Find three (3) individuals from the population that you are addressing. If you have a broad topic, find someone experienced in the field.  Use the information you have gathered thus far to guide your conversations.

  A university spent 18 million to install solar panels atop

a university spent 1.8 million to install solar panels atop a parking garage. these panels will have a capacity of

  Achieve representational fluency in the study of functions

Explain how Task Rotation Strategy allows the teacher to pay attention to the each of the four types of mathematics learner. Which student abilities are involved when students achieve representational fluency in the study of functions.

  What is the simple payback period

The going aircraft corportation is manually producing a certain subassembly at a direct labor cost of $100,000 per year. Annual maintenance for the automated system will be $10,000, and its market (salvage) value will be $7000 at any time in the futu..

  Explain why the presence or lack of profits might exist

Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formul..

  Open and closed fiscal policy multipliers

Explain and demonstrate the differences between 'open' and 'closed' fiscal policy multipliers. (Assume a fiat curency and floating exchange rates.) Be sure to discuss the small economy vs. large economy case in your answer.

  Palm tree island hotels database

You will work with the Palm Tree Island Hotels Database in Weeks Two, Three and Four.

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