Is common stocks or bonds best for a high risk firm? Why?

Q: Will there be an effect on interest rates if brokeragecommissions on stocks fall? Explain your…

A: Brokerage commissions are the investor's charges to the intermediate agent who makes stack exchange…

Q: What is the relationship between risk and return in finance? Why does this relationship hold in the…

A: A return refers to the additional net revenue received from the investment. Risk refers to the…

Q: Economists refer to the conflict between the interests of shareholders and the interests of top…

A: Different parties have different interests in a particular organization.

Q: These are managed by firms or companies of mutually-shared funds in order to achieve a given…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How does diversification benefit against risk in your portfolio?

A:

Q: How is what WallStreetBets did differently from what hedge funds normally do? (GameStop is market…

A: Thinknum Alternative Data quickly built and launched a tool that gives its hedge fund and investment…

Q: Explain what is the risk premium?

A: A risk premium is the return in excess of the risk-free rate of return an investment is predicted to…

Q: What are some examples of financial assets? Rank these examples in order of their risk.

A: A financial asset refers to the liquid assets that get their value from a contractual right or…

Q: How can the Philippine Stock Exchange entice an average Filipino citizen to invest in securities?…

A: Savings and investments are important in the economy. For the economy to function smoothly, there is…

Q: Define stocks?

A: Organizations sell stock in order to raise funds so that they can operate their business. Stocks can…

Q: How can an inaccurate estimate of assets have serious consequences?

A: Answer - Estimates of assets - It is approximate value of assets of original value of assets which…

Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…

A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…

Q: The Wall Street Journal reported that Juniper Networks, Inc.—a maker of company network…

A: The first significant point to make with investors is that restructuring the incentive plan is…

Q: Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a…

A: Answer - Thank you for submitting the questions.But, we are authorized to solve only 3 sub parts…

Q: What are some of the major differences between common stock and preferred stock

A: A stock (sometimes called equity) is a financial instrument that represents ownership of a share of…

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: When discussing public policy related to corporate governance, a financial economics perspective…

A: Corporate governance refers to system by which a company is directed and controlled. It essentially…

Q: How economy plays a vital role in controlling stock prices.

A: A stock market, also known as an equity market or a share market, is a gathering of buyers and…

Q: Should a person who is risk-averse hold a portfolio with no stock and only bonds? Explain.

A: Equity investment is volatile and a person may lose all his money in a particular stock if the…

Q: What are some of the weaknesses behind risk-based capital standards? Answer around 500 words.

A: Capital regulatory requirements are one of the ways to provide protection against bankruptcies.  The…

Q: The benefit of diversification when constructing a portfolio is that it can reduce what?

A: Diversification(D) is a strategy to minimize the risk by combining variety of investments(I) within…

Q: Explain how shares of stocks differ from mutual funds.

A: A stock (also referred to as equity) is a security reflecting the ownership of a fraction of a…

Q: Is maximizing a firm’s profits always identical to maximizing the firm’s stock market value?

A: Profit maximization means a firm is earning a good amount of profit which covers its all cost that…

Q: Analysts often talk about using P/E ratios to value stocks. Why? explain the limitations of using…

A: Analysts often talk about using P/E ratios to value stocks. This is because, it is the most common…

Q: What is an economically meaningful corporate event from a shareholders’ ownership perspective? a.…

A: Common Business Practices Stock splits, dividends, mergers and acquisitions, rights issues, and…

Q: Why is there a need for companies like Standard and Poor’s and Moody’s to provide ratings (i.e. AAA,…

A: Adverse selection: - Adverse selection is a problem that arises because of the difference in the…

Q: During the early 2000's, energy giant Enron was shaken by financial mismanagement and scandal.  It…

A: The Enron embarrassment caused to notice bookkeeping and friends extortion as its investors lost $74…

Q: If a corporation decides to issue their shares of stocks to the public for the first time, which of…

A: Shares refer to the ownership of the company. If a company buys shares of a particular company then…

Q: Explain the difference between Initial Margin and Maintenance margin in stock trading.

A: The stock market comprehensively alludes to the assortment of trades and different settings where…

Q: Answer the attached question

A: With rise in stock prices, it is only profitable till shares are sold.

Q: What will happen if two assets are earning the same expected return, but one is more risky than the…

A: There is a positive correlation between risk and return (a connection in which both variables move…

Q: Why might a company’s stock price fall after record earnings are announced? Conversely, why might…

A: The current price at which the share of stock is sold and purchased in the market is called stock…

Q: Why may different analysts arrive at different intrinsicvalues for the same stock?

A: The stock market deals with several fluctuations with ups and downs and many other likely…

Q: Under what conditions will behavioral biases impact stock returns? under what conditions will…

A: Behavioural bias will mirror that singular conduct will have higher impact over his trading choices…

Q: Why would versification over purchasing one stock? Please provide a detailed example.

A: Answer- Versification over purchasing one stock with example- There are many mis conception about…