Rank the following goods, according to how much their present price responds to expected future prices. (1-most responsive; 4=least responsive). Hint: You should think about the relative costs of storing the good, and the ease of buying and selling it (liquidity) because both help to determine the feasibility of adjusting the timing of purchases and sales. Iron. Stocks. Apples. Gold.

Rank the following goods, according to how much their present price responds to expected future prices. (1-most responsive; 4=least responsive). Hint: You should think about the relative costs of storing the good, and the ease of buying and selling it (liquidity) because both help to determine the feasibility of adjusting the timing of purchases and sales. Iron. Stocks. Apples. Gold.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

How would you classify dividends from investments on a cash budget? a. Cash brought forward b. Payment c. Receipt d. Opening balance When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: a. Always compare them over a time period of equal service b. Find the present worth over one life cycle of each alternative c. Always compare them over a period equal to the life of the shorter-lived alternative d. Always compare them over a period equal to the life of the longer-lived alternative
What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice Whet happened? What is happening Why did it happen? What ere the root couses of past results? WIlI heppen in the fuure? What is the probebility something will heppen? is t forecastable? Whet should we do based on what we expect will happen? What should we do based on what we expect wil heppen? How do we optimize our performance based on potential consreinns
An advantage that money has over other assets is that it: Answer a. Provides a higher return to the owner b. Is a safer asset to hold during times of inflation c. Increases in value over time d. Has lower transaction costs to use as a means of payment than other assets
Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
A centerpiece of any study of finance is "valuation." A simple function, "V=l/R," can be used to describe an asset's "value." What does the "R" in that expression stand for? O a future cash flow O a current cash flow O a market-determined discount rate O a variable income measure O a measure of probability
Which of the following scenarios can increase the return on assets? a. Increase the current and quick ratio b. Increase the profit margin, other things equal c. Other things equal, increase the amount of assets used d. Other thing equal, decrease the turnover of assets
______ is the process of determining the price that market participants would likely pay for something. a.) Analysis b.) Financing c.) Accounting d.) Valuation
3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,
Market value ratios try to answer what question for potential investors? Do financial statements contain all of the necessary information to answer this question? Explain in terms of the P/E (price earnings) ratio.
The reliability of short-term cash forecast depends most heavily on the quality of: a) sales forecast b) cost of goods sold forecast c) current ratio forecast d) shares outstanding forecast
. The word market as used in “the lower of cost or market” generally meansa. net realizable value.b. liquidation price.c. retail market price.d. original cost.
Lowering the discount rate on a cash flow will its present value. A. decrease, then increase O B. increase, then decrease O C. decrease D. increase

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