Why is the fixed asset riskier than current asset?

Q: What happens if economic engineers invest too much in assets?

A: Economic engineers always combine finance with engineering and develop various models to deal with…

Q: What are the major advantages of leasing a fixed asset rather than purchasing it?

A: A lease can be defined as an arrangement between the lessor(owner of the asset) and the lessee (user…

Q: benefit results from holding a portfolio of assets rather than a single asset?

A: A portfolio is a combination of various financial instruments

Q: Which current asset is typically the least liquid?

A: Introduction: Current assets are those assets with a high liquidity and that can normally be…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: at cost of unsucc angible asset be

A: Since you have asked multiple question, we will solve the first two for you. If youwant any specific…

Q: What is the Fama-MacBeth Method in asset pricing assumptions?

A: Fama Mac Beth method is kind of regression method used for determining of parameters for like CAPM…

Q: What is reinvestment rate risk?

A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…

Q: What if noncurrent asset is not a subtitle I can chose from? Is there another heading I can use or…

A: The non-current assets means those assets which are not current assets, i.e. they would benefit the…

Q: How can we reduce investment risks by asset diversification?

A: Answer: Diversification is nothing but the strategy that reduces the risk by allocating assets to…

Q: how to get amortization?

A: Amortisation is an accounting technique used to lower down value of loan amount or intangible assets…

Q: What are the three factors that the expected return on any risky asset is composed of?

A: Following are the three factors that the expected return on any risky asset is composed of:…

Q: the Capital Asset Pricing M

A: Explanation : In simple words, Capital asset pricing model for valuing the cost of capital contains…

Q: What are the reasons why buyer would prefer to purchase asset rather than stock

A: In an asset purchase, the buyer agrees to purchase specific assets and liabilities. This means that…

Q: Give an example of an asset that would have the most significant investment?

A: Every business organization wants to invest its idle funds into some productive assets. Investment…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: How do investors account for risk when determining an asset’s value?

A: Asset valuation helps to determine the fair value of the asset. Various asset valuation models such…

Q: When identifying undervalued and overvalued assets, which of the following statements is least…

A: While identifying whether the assets are undervalued or over valued, the required rate of return as…

Q: Why must the Engineers consider the effective use of fixed capital assets?

A: Engineer indulge in numerous process of decision-making such as manufacturing, financing, and…

Q: c) What are the advantages of using duration as an asset-liability management tool as opposed to…

A: Asset and liability management (ALM) is a method used by financial organizations to reduce financial…

Q: Can someone explain this amortization schedule's breakdown?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…

Q: hat situational circumstances can the Asset-based valuation be

A: Valuation is the process of determining the fair market value of a company's assets or operations.…

Q: Explain the risk-return trade-off for liquid assets.

A: Risk return trade off tell relationship between the risk and return.

Q: 2- Why is the fixed asset riskier than current asset?​​​​​​

A: Fixed Assets are the assets invested by the company to be with the firm for more than 12 months.…

Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?

A: Estimates of assets:  Estimate of assets is the estimated worth of assets of original worth of…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: Discuss the nature of acquiring fixed assets?

A: Fixed assets are one of the major investments of a company and this covers the huge part of the…

Q: Why do deferred liabilities arise? Explain your answer with suitable example.

A: Why do deferred liabilities arise? Explain your answer with suitable example.

Q: Will the carrying value of a long-term asset be equivalent to its market value under typical…

A: Here is the Answer

Q: (a) Define risk-free asset

A: An asset which generally having certain future returns and there is no chance of loss in return is…

Q: what will be the Market Leasing Assumptions with Renewal Probabilities?

A: Market leasing assumption is a very important assumption which is used in calculating the value of…

Q: Define risk-free asset?

A: Risk-free means that anything which does not have any kind of risk associated with it. They are free…

Q: What are some advantages of matching the maturities of claims against assets with the lives of…

A: Whenever something is going to give benefit in future, it is known as asset. The amount which is…

Q: Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?

A: The Fama–MacBeth method in asset pricing is used to estimate different parameters for asset pricing…

Q: What serious consequences occur in an inaccurate estimate of asset needs?

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

Q: Under normal circumstances, will the carrying value of a long-term asset be equal to its market…

A: Assets are recorded at historical figures.

Q: Write down why do you think there is a problem in CA(current asset) management

A: Fixed Asset Turnover Ratio (FATO) can be defined as the relationship between the investment made in…

Q: which asset never depericate in value

A: The question is related to the Non-Depreciating Asset.

Q: Why is it favorable to invest in different investable assets?

A: Diversification is very important in investment to achieve the consistency.

Q: Explore the implications of short-selling and the inclusion of a risk-free asse

A: Short selling may be a trading or investment strategy that bets on the worth of a stock or other…

Q: What are the three sources, the owner of a risky asset should expect to earn a return from?

A: An asset which does not provide fixed rate of return is known as risky asset. The returns provided…