The following data relate to stock item PR7: 1,000 units per day 600 units per day 1,300 units per day 7.5 days 5 days 10 days Average usage Minimum usage Maximum usage Average lead time Minimum lead time Maximum lead time EOQ Reorder level 40,000 units 13,000 units

Q: Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.

A: The stock returns are the yield on shares and stocks. Returns of the stock are affected by different…

Q: Illustrate the impact of changes in the dividend, the growth rate, the expected return on the…

A: The value of a stock is determined by several factors, including the dividend, the growth rate, the…

Q: How to figure out price targets for stocks by charting

A: One of the most typical ways to create a target price is to first identify a technical chart…

Q: Define average stock’s beta

A: Beta tells about the change in stock’s return given to change in market risk.

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: How do you calculate the Treynor ratio for the AMD stock?

A: Treynor ratio is referred to as the portfolio performance, which used to measure regarding the…

Q: How does a stock price play a role in ROA or ROE

A: Return on Equity (ROE) is the ratio which defines the company’s efficiency to utilize investors…

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: A yield curve compares expected returns of stock and bonds to their maturities. Select one: True OR…

A: A yield curve is a graph that gives interest rates of bonds over a range of maturities. The bond's…

Q: How do you calculate the beta of stock?

A: Beta is the measure of stock's volatility to the overall market, and is calculated as-

Q: how is price oc preffered stock gotten

A: The cost of preferred stock is determined by the dividend payment divided by the net proceeds per…

Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Define target stock or targeting stock

A: A target stock is defined as the capital stock of the target which includes common stock, preferred…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.