Why lonesome gulch is the safer investment for a diversified

Assignment Help Finance Basics
Reference no: EM132502548

Risk and diversification. Lonesome Gulch Mines has a standard deviation of 42% per year and a beta of +.10. Amalgamated Cooper has a standard deviation of returns of 31% a year and a beta of +.66. Explain why Lonesome Gulch is the safer investment for a diversified investor.

Reference no: EM132502548

Questions Cloud

Demonstrate what is the stocks current price : Demonstrate What is the stocks current price. Navel County Choppers, Inc. is experiencing rapid growth. The company expects dividends
Determine what is the current share price : Determine What is the current share price. Estes Park Corp. pays a constant 7.80 dividend on its stock. The company will maintain this dividend
Calculate the weighted average flotation costs : 1. Calculate the weighted average flotation costs. (Enter percentages as decimals and round to 4 decimals)
Which price will yield the largest monthly profit : Which price will yield the largest monthly profit? Monthly costs of producing and delivering the magazine include $95,000 of fixed costs and variable costs
Why lonesome gulch is the safer investment for a diversified : Amalgamated Cooper has a standard deviation of returns of 31% a year and a beta of +.66. Explain why Lonesome Gulch is the safer investment for a diversified in
Synthesis and Critical Evaluation of the Articles : The purpose of the Assignment is to provide a synthesis and a critical evaluation of the articles selected. Write a research essay on Development Communication
What are the key features of a bond : How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%?
Which is true about sallys mortgage interest deduction : Which of the following is true about Sally's mortgage interest deduction? could the correct answer be Mortgage interest on the home equity loan
Strategic international business management assignment : Strategic International Business Management Assignment Help and Solution - Identify the factors that the management team might wish to consider

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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