If you had $50,000 to invest in the stock market, how would you go about reducing...
1. Diversification cannot reduce the portfolio risk if you invest different stocks in the same industry. Why? Explain. Diversification reduces the portfolio risk if you invest different stocks in the different industries. Why? Explain. 2. If you would like to form your stock investment portfolio, (1) how many stocks would you include in the portfolio, and (2) what are these stocks (companies) in the portfolio. Explain why you choose these companies.
Do you invest in the Stock Market (either in individual stocks or mutual funds) on an individual basis or in a 401k account? How do you choose the stocks or funds you purchase? Please no personal information, just basic discussion on risk vs. reward.
Do you invest in the Stock Market (either in individual stocks or mutual funds) on an individual basis or in a 401k account? How do you choose the stocks or funds you purchase? Please no personal information, just basic discussion on risk vs. reward.
How would you go about deciding that the stock is undervalued? What happens when many investors think that the stock is undervalued?
You have $35,000 you would like to invest in two different stocks, Stock Boll and Stock Coff. The buying limit on Stock Coff is $14,700 and you want to spend at least three times as much money on Stock Boll as stock Coff. If Stock Boll earns 6% annual interest and Stock Coff earns 4% annual interest, how much you invest in each stock to maximize your annual interest earned? What is the maximum annual interst? money should You will...
A) In a semi strong form market, how would stock prices react to a company announcing yearly profits? B) Martha can make abnormal returns trading on information - what does this say about the efficiency of the market? Give 2 reasons why she shouldn't do this. C) Your friend wants to invest all of his wealth into stocks due to a pick from a technical analysis. Discuss why he is an idiot for doing that ensuring you talk about market...
Explain how an individual's age and income level should influence decisions about how much to invest and decisions about risk allocation among different types of investments.
You have $10,000 to invest in a portfolio containing Stock R, Stock S, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15% and that has only 120% of the risk of the overall market. If Stock R has an expected return of 25% and a beta of 1.6, Stock S has an expected return of 17.5% and a beta of 1.3, and the risk-free...
In 100 words or more: How would you go about identifying a market for a new business? What are its most frequent uses; its most effective uses?
You want to invest in the stock market. You are willing to pay $100 per share of stock of a well- run and profitable company. However, if the company is badly run, you are only willing to pay $10 per share of stock. You read a report that 80% of companies in the market are well run and 20% are badly run. Answer the following questions: a. Calculate your expected value of a stock chosen randomly among those for sale....