Finance Questions
Explore questions in the Finance category that you can ask Spark.E!
Which of the following types of projects has average total risk?
The historical returns for the past four years for Stock C and the stock market portfolio are:Stock C: 10%, 30%, 20%, 20%Market portfolio: 5%, 15%, 25%, 15%If the risk-free rate of return is 5%, calculate the required rate of return on Stock C using the CAPM.
The company cost of capital is the correct discount rate for any project undertaken by the company.
Cyclical firms tend to have high betas.
The historical returns for the past three years for Stock B and the stock market portfolio are:Stock B: 24%, 0%, 24%Market portfolio: 10%, 12%, 20%Calculate the observed covariance of returns between Stock B and the market portfolio.
If a firm uses a PROJECT-SPECIFIC cost of capital for evaluating all projects, which situation(s) will likely occur?I. The firm will accept poor low-risk projects.II. The firm will reject good high-risk projects.III. The firm will correctly accept projects with average risk.
Generally, one should use the short-term Treasury bill rate for the risk-free rate.
Projects with great amounts of diversifiable risk should generally have higher company costs of capital.
Portfolio betas for an industry are usually higher than the average betas of individual stocks in that same industry.
If a firm uses the SAME company cost of capital for evaluating all projects, which situation(s) will likely occur?I. The firm will reject good low-risk projectsII. The firm will accept poor high-risk projectsIII. The firm will correctly accept projects with average risk
The company cost of capital is the correct discount rate only for investments that have the same risk as the company's overall business.
Distrust, unemployment, and bank fees are a few excuses people give for...
Credit Unions differ from retail banks in that they typically require membership based on specific criteria.
People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.
With certificates of deposit (CDs), you have to pay a penalty for ____________.
If you see a charge you don't recognize, you should report it to your bank immediately.
A debit card linked with your checking account is a good option for regular spending.
A bank can help you _____ your money and keep it _____.
An easy way to avoid ending up with errors in your checking account is to simply...
As the owner of your account, managing your money is ______ responsibility.