1. What is the most significant way the lending function affects the economy of its community or region?
2. Systematic and Unsystematic Risk are very important concepts to understand. Which of these risks can be reduced by diversifying an investment portfolio. Explain in your own words why.
3. The expected dividend to be paid by Xeron on its common stock is $2.50 (annual). The investor’s required rate of return for the security is 10%. Growth is anticipated to be at 2.5% annually. The market price of the stock should be?