(a)Define short sales and discuss its merits. (b) Explains the significance of ethics in the investment and trading world. (c) Discuss the Differences among types of investors. (d) Which risks may be diversified and how?
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(a)Define short sales and discuss its merits.
(b)
Explains the significance of ethics in the investment and trading world.
(
c
)
Discuss the Differences among types of investors.
(
d
)
Which risks may be diversified and how?
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- Which of the following statements is true? Group of answer choices The Principle of Diversification states that investors are better off by investing in one asset. The Principle of Diversification states that investors are better off by investing in different types of assets. The Principle of Diversification states that investors are better off by investing in risk-free assets. The Principle of Diversification states that investors are better off by investing in an industry of their choice.The quality of the financial market is an important aspect for market participants. Describe its significance along with the characteristics that determine the quality of amarket? This question is related to Investment Analysis and Portfolio ManagementWhich of the following statements is false? A. Internal controls are the processes by which the firm ensures that it presents accurate financial statements. B. Greenfield investments provide uncertain cash flows with high yields and high growth potential. C. Footnotes allow investors or any users to improve their assessments of the amount, timing, and uncertainty of the estimates reported in financial statements. D. Secondary markets are the markets in which existing, already outstanding securities are traded among investors.
- The production opportunities that exist in the economy represents one of the four fundamental factors that affect the: Group of answer choices creditworthiness of investors. liquidity of securities. liquidity of securities. cost of money. maturity of an investment.The value of an investment can be defined in numerous ways. Which is FALSE? a. It is the value determined by demand and supply. b. It is an objective estimate wherein the risk preference of the investor is considered. c. It is the present value of the cashflows on the investment d. It is dependent on the perceptions of the investor.Which of the following is not a determinant of investment? a) The efficiency of capital equipment b) The level of consumer demand c) Interest rates d) The willingness of investors to buy new share issues
- Which one of the following statements about book value and market value is correct? Group of answer choices a. Both book value and market value are forward-looking. b. Both book value and market value account for all forms of assets and liabilities of a firm. c. The market value of equity should not differ much from the book value of equity. d. Decision-making should be based on market value instead of book value.The sensitivity of a stock to market risk affected by currency movements is known as the a. value factor. b. net present value. c. exchange rate sensitivity. d. exchange risk beta. Which of the following types of risk is the most difficult to foresee? a. Economic b. Translation c. Transactions d. Consolidated The management of the direct resources that are involved in the production system of a business organization is known as a. procurement management. b. research and development. c. operations management. d. logistics management.Which of the following is true of risk-return trade off? A) Risk can be measured on the basis of variability of return. B) Risk and return are inversely proportional to each other. C) T-bills are more riskier than equity due to imbalances in government policies. D) Riskier investments tend to have lower returns.
- If markets are truly efficient, does it matter whether firms engage in earnings management? On the other hand, if firms manage earnings, what does that say about management’s view on efficient markets?__________ focus more on underlying determinants of future profitability than the past price movements of a firm's stock. A) Credit analysts B) Fundamental analysts C) Systems analysts D) Technical analysts Please provide an accurate answer.Which of the following statements regarding arbitrage is the most correct? A) Any situation in which it is possible to make a profit without taking any risk is known as an arbitrage opportunity. B) Any situation in which it is possible to make a profit without making any investment is known as an arbitrage opportunity. C) We call a competitive market in which there are no arbitrage opportunities an arbitrage market. D) The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.
