Question

There are investors who claim they only invest in companies with great products and outstanding management,...

There are investors who claim they only invest in companies with great products and outstanding management, and ignore the stock price. Does it still make sense to develop an efficient frontier while adhering to this approach to investment? Discuss why or why not.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The investors who claim that they invest in companies with great products and outstanding management and ignore the stock prices of the company because they rely on the quality basis of the company they doesn't look on the market approach of the company where they believe that products are well defined in the market even when the stock prices are low because they know in a long run the stock prices will go up when the great products and outstanding management will show it's true colors in the market so It does make sense to develop an efficient frontier while adhering to this approach to investment.

Add a comment
Know the answer?
Add Answer to:
There are investors who claim they only invest in companies with great products and outstanding management,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Only say choice 8. In order to maximize firm value, management should invest in new assets...

    Only say choice 8. In order to maximize firm value, management should invest in new assets when the internal rate of retum a. greater or equal to the firm's marginal cost of capital. b. greater than the cost of debt financing. c. less than or equal to the accounting rate of return. 9. The cost of capital is: a. the opportunity cost of using funds to invest in new projects. b. the rate of return the firm must ean on...

  • Leaders who want to take the next step in their career can follow a straightforward four-step cro...

    QUESTION 1. 2. Describe the fourth step in the leadership cross-training process. Leaders who want to take the next step in their career can follow a straightforward four-step cross-training process. The basic idea behind this cross-training approach is simple yet effective. While the most effective leaders have at least one competency that makes them great and eventually indispensable, it makes little sense to continually work on already great qualities. Instead, leaders can benefit from identifying and developing complementary strengths. Building...

  • Answer with True or False only for each of the questions. 1) Ignoring the length of maturity all ...

    Answer with True or False only for each of the questions. 1) Ignoring the length of maturity all debt Treasury assets are the same. 2)Bonds can be traded in both Money market and Capital market. 3)Standard and Poor ratings are more reliable that Moody’s ratings. 4)Excluding Treasury bonds, total dollar value of bond market is less than stock market. 5)In riskier economic condition TED spread would be wider. 6)Firms sell their stocks in primary market lower than its real value....

  • Hey guys, I need some help solving this problem. thank you very much in advance! Pontfolio Optimization Task 4 Suppose the shares of two different companies give you the same return on average...

    Hey guys, I need some help solving this problem. thank you very much in advance! Pontfolio Optimization Task 4 Suppose the shares of two different companies give you the same return on average. Does it make sense to distribute your money and buy some shares of each company? Or would it be better to invest all the money into only a single company? Common sense says: "distribute" Why? Let's see... What at all could we gain if the return is...

  • Netflix Case Analysis for the article “How Netflix sent the biggest media companies into a frenzy,...

    Netflix Case Analysis for the article “How Netflix sent the biggest media companies into a frenzy, and why Netflix thinks some are getting it wrong” by Alex Sherman, CNBC, Wed, 13 June 2018 Background/Problem Statement Netflix began in 1997 but did not cause a major disruption in the media business until later in its existence when it began its DVD order service, which many believe took out Blockbuster, and the like, and it's true big disruption when it began its...

  • On October 26, Zelda T., an employee in the pattern department of a synthetic rubber products...

    On October 26, Zelda T., an employee in the pattern department of a synthetic rubber products company, was told she would be laid off for lack of work five days later. This notice, required by the collective bargaining agreement, was intended to give an employee facing idleness an opportunity to look around and see whether there was any other job in the shop that her seniority might give her the right to claim. Zelda and the union steward did just...

  • Why companies are advertising their master brand Recently, both Hershey and Coca-Cola have switched to a...

    Why companies are advertising their master brand Recently, both Hershey and Coca-Cola have switched to a master brand strategy. Instead of promoting, for example, Hershey’s Syrup, chocolate bars, and Hershey’s kisses separately, the company is running an advertising campaign that unites all Hershey branded treats in a single commercial, emphasizing the corporate brand name over individual product lines. While companies that operate multiple business units or multiple product lines have always had the option of employing a master brand strategy...

  • Global Learning Case: Samsung: Building a Great Brand Ten years ago, Samsung Electronics Company sold a bunch of low-end...

    Global Learning Case: Samsung: Building a Great Brand Ten years ago, Samsung Electronics Company sold a bunch of low-end electronics under various brand names such as Wiseview, Tantus, and Yepp. New management decided to ditch these names and brand all of its products Samsung. At the same time, it invested heavily in design and product quality and in 10 years, it now makes top-of-the-line cell phones and digital TVs that showcase its technological advancements. These are products to which consumers...

  • In March 2018, the management team of Londonderry Air (LA) met to discuss a proposal to purchase five shorthaul aircraft at a total cost of $25 million.

    In March 2018, the management team of Londonderry Air (LA) met to discuss a proposal to purchase five shorthaul aircraft at a total cost of \(\$ 25\) million. There was general enthusiasm for the investment, and the new aircraft were expected to generate an annual cash flow of \(\$ 4\) million for 20 years.The focus of the meeting was on how to finance the purchase. LA had \(\$ 20\) million in cash and marketable securities (see table), but Ed Johnson,...

  • 1. According to the chapter, who in a company is most prone to engaging in unethical...

    1. According to the chapter, who in a company is most prone to engaging in unethical practices? What are the implications for companies? 2.Why do ethics and integrity matter in a company? How can a company best ensure highly ethical practices? 3. Review recent news releases about Avon. Does the company seem to have recovered from its ethical problems? Read this Case Study, "Would Claims of Ethical Wrongoing by a Company Impact Your Buying the Firm's Products?" Headquartered in New...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT