Which investment is riskier

Assignment Help Finance Basics
Reference no: EM131733005

Stock A has an expected rate of return of 8%, a standard deviation of 20%, and a market beta of 0.5. Stock B has an expected rate of return 12%, a standard deviation of 15%, and a market beta of 1.5. Which investment is riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)

Reference no: EM131733005

Questions Cloud

Find the largest reverse split in terms of shares : Stock Splits. Go to www.stocksplits.net and find the stock splits. How many stock splits are listed? How many are reverse splits?
Discuss neutral monetary policy : What is the current and anticipated monetary policy of the U.S. Federal Reserve
The development to provide evidence based practice : The development to provide evidence based practice is based on the increasing public and professional demand for healthcare to be accountable for the safety.
Communication technology in any organization : Use of communication technology in any organization - Explain in general what do you mean by research philosophy - Choose one from the above and state reason
Which investment is riskier : Which investment is riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)
Define impact fees and development charges : Define impact fees, development charges, and special assessments.
When was the most recent stock split : Stock Splits. How many times has Procter & Gamble stock split? Go to P&G's webpage at www.pg.com and find the history of the company's stock splits.
Discuss monetary policy to reduce the inflation rate : Suppose the Federal Reserve announced that it would pursue contractionary monetary policy to reduce the inflation rate
What is the net profit margin and amount of total assets : What is the Net Profit Margin? What is the Asset Turnover? What is the amount of Total Assets?

Reviews

Write a Review

Finance Basics Questions & Answers

  Which project would bondholders prefer and why

Assuming that the investors are concerned only about expected returns, which project would stockholders prefer? Why? Which project would bondholders prefer? Why?

  Avril synchronistics will pay a dividend of 130 per share

avril synchronistics will pay a dividend of 1.30 per share this year. it is expected that this dividend will grow by 5

  Determine the exchange rate

Assume a Danish krone is selling for $0.1845 and a Maltese lira is selling for $2.7211. Determine the exchange rate of the Danish krone to the Maltese lira?

  Stock current value per share

The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, r is 18%. What is the stock's current value per share? Round your answer to two decimal places.

  Square mile area for five days

Hurricane Harvey dumped an average of 5 inches (about 13cm) of rain per day over a 20,000 square mile area for five days.

  What fraction of the payment made at the end

Your company is planning to borrow $1,750,000 on a 3-year, 16%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal plac..

  How does each firm recognize revenue

Revenue Recognition and Operating Income - How does each firm recognize revenue and how does its revenue recognition policies compare to its competitors? Is there evidence of aggressive revenue recognition

  Estimate the current stock price

A stock is not expected to pay a dividend over the next four years. Five years from now the company anticipates that it will establish a dividend of $1 a share.

  Consider the information regarding occupational health and

consider the information regarding occupational health and safety.prepare an article for a newspaper that discusses the

  Calculate the npv of a project

1. Calculate the NPV of a project with the following cash flows and a 10% discount rate:

  How do sinking funds reduce default risk

1) How do sinking funds reduce default risk?

  What is the average inventory held during the year including

Appliance for Less is a local appliance store. It costs this store $19.50 per unit annually for storage, insurance, etc., What is the average inventory held during the year including?

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