Why are bond returns expected to be lower than stock returns?
You are an entry-level security analyst at an investment firm. The firm’s economist is forecasting higher energy prices. How might this affect your decision to recommend the buying of stocks in each of the following firms? Explain your reasoning. a) ExxonMobil b) American Airlines c) Ford Motor Company d) Archer Daniels Midland (a food processor)
Would primary markets exist without the existence of secondary markets? Why or why not?
How do you think risk should be measured? Explain why you think it is best. Explain what is meant by “risk drives expected return” For Asset A and for Asset B, compute the average annual return, variance, standard deviation, and coefficient of variation for the annual returns given below. a. Asset A: 5%, 10%, 15%, 4% b. Asset B: -6%, 20%, 2%, -5%, 10%
Compute the holding period returns for each security below: Security Price Today Price One Year Ago Dividends Received Interest Received RR $20.05 $18.67 $0.50 WC $33.42 $45.79 $1.10 AC $1,015.38 $991.78 $100.00
Find the real return, nominal after-tax return, and real after-tax return for each of the following stocks: Stock Nominal Return Inflation Tax Rate X 13.5% 5% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28%
In what ways does a proprietorship differ from a partnership?
In what ways does a proprietorship differ from a corporation?
What information might a changing stock price give to managers?