asked for your advice. The three stocks currently held all have b = 1.0‚ and they are perfectly positively correlated with the market. Potential new Stocks A and B both have expected returns of 15%‚ are in equilibrium‚ and are equally correlated with the market‚ with r = 0.75. However‚ Stock A’s standard deviation of returns is 12% versus 8% for Stock B. Which stock should this investor add to his or her portfolio‚ or does the choice not matter? Answer: B‚ Stock B Since she has a portfolio the number
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Are Athletes Above the Law Sports have been played for years for not only not for entertainment but also for the love of the games. Time and time again we see athletes who are very talented and we love to watch these athletes on our televisions. We sometimes love these athletes too much and take up for them when they are wrong. The media takes up for these athletes also and that helps them in the courts. Athletes are sometimes prone to get into trouble because of their recognition and the great
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CHAPTER 22 estimating risk and return on assets 1. WHAT IS RISK? Risk is the variability of an asset’s future returns. When only one return is possible‚ there is no risk. When more than one return is possible‚ the asset is risky. The greater the variability‚ the greater the risk. 2. RISK – RETURN RELATIONSHIP Investment risk is related to the probability of actually earning less than the expected return – the greater the chance of low or negative returns‚ the riskier the investment. Investors
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Chapter 11 Exercises 11-5 Return on Investment (ROI) Provide the missing data in the following table for a distributor of Martial arts products: 11-9 Return on Investment (ROI) and Residual Income Relations A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing information in the table below: 11-18 Return on Investment (ROI) and Residual Income “I know headquarters wants us to add that new product
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O. Henry (1862-1910) was originally born William Sydney Porter in Greensboro‚ North Carolina. As a young man‚ he moved to Austin‚ Texas where he worked as a bank teller. He moved again to Houston‚ Texas in 1895 and became a newspaper columnist. In 1896‚ however‚ he was called back to Austin‚ where he was charged with embezzling money from the bank where he had worked. Not wanting to go to prison for his crime‚ O. Henry fled to Honduras‚ and stayed there for six months before returning to the
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Amniocentesis The above picture illustrates amniocentesis‚ a procedure to test for birth abnormalities including spina bifida*‚ anencephaly*‚ and Rh disease*. With the assistance of an ultrasound (imaging of abdomen using high frequency sound waves)‚ a fine needle is guided through the mother’s abdomen/uterine wall to then extract the amniotic fluid from the uterus (womb). Afterwards‚ the extracted material is sent to the laboratory for cytological analysis which will determine if the fetus is
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THE EMINENT RETURN OF CHRIST This has really raised a lot of questions in the hearts of many. When we talk about the return of a person‚ then it means that such a person has come before and yet to come again as being expected by those who know of him. The return of Christ is what many believers have always waited for and this has gone a long way to pattern their lifestyles because of the cost thereof. Before one can wait for a person‚ then such a person must have known and experienced whom he is
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start shaping our minds for the future education needed to make these dreams into a reality. One job I hope to attain is a veterinarian. A veterinarian is a doctor that helps animals. I have always had a passion for animals and I think this job would be perfect for me. In order to reach this goal‚ I would have to get my undergraduate degree and my Doctor of Veterinary Medicine (DVM) degree. I would like to receive my undergraduate degree at Stanford University. My DVM would be achieved at Cornell
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well‚ Shanghainese Like many regions of China‚ Shanghai has its own spoken language. Of course‚ technically speaking it’s a dialect. One of the 248 Chinese dialects identified by Wikipedia. Shanghainese is gigantically different from Mandarin. If I say something in Shanghainese to a Beijinger‚ I’m bound to get a confused look‚ and possibly some eye-rolling. It gets better. Even within the city itself‚ there are a few mini-dialects. People from the outer suburbs have accents‚ and sometimes vocabulary
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distribution and marketing of the O-Fold? Within the text I really liked the 2nd and 3rd option of distribution‚ which was going an online route or advertising I travel magazines. Although the adverting in magazines option is appealing when it comes down to it I don’t think it would reach as many people as online distribution. I would chose to create a website and distribute the O-Fold product through there. Creating a website would be extremely cost effective. I believe there are even some sites
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