Why do real returns matter more than nominal returns

Reference no: EM131997282

Question: When measuring the volatility of an investment's returns, why is it easier to focus on standard deviation rather than variance?

Why do real returns matter more than nominal returns?

Explain why dollar returns and percentage returns can sometimes send conflicting signals when you are comparing two different investments.

How can investors hold a portfolio with a weight of more than 100 % in a particular asset?

A stock has a beta equal to 1.0. Is the standard deviation of the stock equal to the standard deviation of the market?

Explain why the efficient markets hypothesis implies that a well-run company is not necessarily a good investment.

Reference no: EM131997282

Questions Cloud

Determine what is the annual ocf for the project : Meld Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $28,621, and the company expects.

Why should you select bond a for the bank portfolio : If you were a member of a bank's funds management committee, one of your tasks might require selection of bonds for purchase in the bank's bond portfolio.

Calculate the equivalent annual cost for machines : Megatrac Co. is evaluating tow different machines. Machine A costs $215,000 has a four year life, and has a pretax operating costs of $40,000 per year.

What is the maximum price suzie should be willing to pay : Mega Conglomerates is a successful company that has a long history of paying dividends to its shareholders twice a year - in the middle of October.

Why do real returns matter more than nominal returns : When measuring the volatility of an investment's returns, why is it easier to focus on standard deviation rather than variance?

Define how long the chilled water system needs to last : The owner uses and MARR of 6%, but is not sure how long he will own the building. A conventional split system has a design life of 10 years, a cost of $52,000.

What are the islamic state of iraq and syria : What are the Islamic state of Iraq and Syria's political ideology, goals, and objective. what are the significant character of the organization?

How do we measure the risk of an entire portfolio : How do we measure the risk of an entire portfolio? Alternatively, how do we measure the risk of a single asset when we consider adding it to our optimal risky.

Socioeconomic status in political participation : Describe the influence of race, ethnicity, gender, and socioeconomic status in political participation.

User Account

All Pages