O Diversification; high equity returns

Q: 5. What is a multi-factor model technique and why is it used in fixed-income portfolio management?

A: Fixed income portfolio comprises of the securities that generate regular income to the investors at…

Q: Which of the following is not a determinant of investment? a) The efficiency of capital equipment…

A: To increase capital assets, business do investments in property, fixed assets, financial market,…

Q: The higher the _____________, the higher the financial risk, and the higher the ____________. a.…

A: Interest rates and price of bonds has reverse relationship. With increase in interest rates, the…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: What is the most likely impact on return on equity of an increase in operating expense margin, all…

A: Operating expenses are required to run the business. AN increase in operating expenses reduces the…

Q: What inputs are required for the dividend growth approach?

A: Dividend: The dividend is the amount paid to buy the company to its shareholders out of its…

Q: Question

A: Prime Brokerage: Prime brokerage refers to a suite of specialized services provided by investment…

Q: Why does have equity habve a higher vost of capital compared to debt?

A: Reasons why equity have higher cost of capital than debt is 1) Debt has tax advantages I,e tax…

Q: apital gain yield (CGY) can be either positive or negative.   Select one: True False

A: Capital gains yield is the percentage increase in the value of an investment. It's calculated by…

Q: MM Proposition II states that: I) the expected return on equity is positively related to leverage;…

A: MM has given two basic proposition one is related to value of firm and second is about the cost of…

Q: How does the constant–growth model influence financial decisions regarding risk and return?

A: The constant growth model, or Gordon Growth Model, is a method of esteeming stock. It expects that…

Q: Revenues increase or decrease equity?

A: Revenue is the income generated from business operations. It is the overall amount of income that is…

Q: easier to calculate directly, the expected rate of return on the assets of a firm or the expected…

A: The return on assets states how profitable the assets of company are in generating the revenue. To…

Q: Consider the role of financial statement analysis in an efficient capital market, and review…

A: Security prices represent the aggregate information known by the capital markets about a firm.…

Q: To identify the cost of equity, which models are better: The dividend growth model or CAPM-derived…

A: The question is based on the comparative study of the methods to derive cost of equity. Cost of…

Q: Is this a right formula? Market Value of Equity = Market capitalization - cash and investment +…

A: Market value of equity and market capitalization are both same and is calculated as number of shares…

Q: The cost of capital can be thought of as the rate of return required by investors in the firm's…

A: The objective of the question is to determine whether the statement 'The cost of capital can be…

Q: Explain the term Growth investing strategies?

A: While taking the investment decision one of the important concern is to invest the amount in such a…