Business
Business, 06.05.2020 16:00, maganns14

Which of the following statements are correct? (a)collections inc. is in the business of collecting past-due accounts for other companies, i. e., it is a collection agency. collections’ revenues, profits, and stock price tend to rise during recessions. this suggests that collections inc.’s beta should be quite high, say 2.0 because it does so much better than most other companies when the economy is weak. (b) suppose the returns on two stocks are negatively correlated. one has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of -0.6. the returns on the stock with the negative beta will be negatively correlated with returns on most other stocks in the market during that 5-year period. (c) suppose you are managing a stock portfolio, and you have information that leads you to believe the stock market is likely to be very strong in the immediate future. that is, you are convinced that the market is about to rise sharply. you should sell your high-beta stocks and buy low-beta stocks in order to take advantage of the expected market move. (d) you think that investor sentiment is about to change, and investors are about to become more risk-averse. this suggests that you should re-balance your portfolio to include more high-beta stocks. (e) if the market risk premium remains constant, but the risk-free rate declines, then the required returns on low beta stocks will rise while those on high beta stocks will decline.

answer
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 14:00, gcristhian8863
Which of the following would be an accurate statement about achieving a balanced budget
Answers: 1
image
Business, 22.06.2019 23:00, lolo8787
The five steps to financial success a. five money myths b. five foundations
Answers: 1
image
Business, 23.06.2019 01:00, alyo31500
Ido not understand this project overview agricultural commodities are bought and sold through the stock exchange. the price of commodities changes all the time. investors buy many agricultural commodities before they are ready for shipping. when an investor buys an agricultural commodity that is going to be ready in the future, they call this purchasing futures. this might be a future crop, meat that has not yet been processed, or another type of agricultural commodity. for this project, you will have to decide how to spend $10,000. research the new york stock exchange. find one or more agricultural commodities that you are interested in. remember, it may be listed as a future crop. instructions identify the agricultural commodities that you think have the best chance of going up in price. think about what is going on with supply and demand. decide how you will spend your money. you may purchase only agricultural commodities. check the market every day for a week. record the price of your commodity or commodities each day. you may buy or sell your commodities at any time during the week. you may sell your commodities and buy different ones. feel free to experiment with the $10,000 by buying and selling commodities, but make sure to keep a careful record of your activities. at the end of the week, you will write a report on your investments. this report should be structured to include this information: page 1: explain how the stock market works. page 2: list all commodities purchased. describe each in detail. discuss why you selected these commodities. remember, they must be agricultural. page 3: create a chart or graph to illustrate the price of your commodity or commodities over the week’s time. list all of your activity buying and selling. make sure you include prices and details. page 4: write a summary of your experience. describe what you might do differently if you were using actual money. propose potential reasons why the price of each commodity may go up or down.
Answers: 1
image
Business, 23.06.2019 01:00, bugsbunny27
Weekly sales at nancy's restaurant total $ 84,000. labor required is 420 hours at a cost of $21,000. raw materials used amount to $40,000. what is the partial measure of productivity for labor hours?
Answers: 1
Do you know the correct answer?
Which of the following statements are correct? (a)collections inc. is in the business of collecting...

Questions in other subjects:

Konu
Business, 09.12.2019 02:31