what can you say about the price movements of the stock? (TEL)

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: Which of the following is the risk due to a changes in the stock market?      Business risk…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: What impact does each of the followingparameters have on the value of a call option?(1) Current…

A: Call option: Call options are financial agreements that give the holder of option the right, but not…

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: Can you help me with an explaination of how to reverse engineer a stock price please?

A: Reverse engineering allows analysts to remove the uncertainties. It is a discounted cash flow that…

Q: Common stock is an example of ?

A: Stockholders’ equity is the measure of assets staying in business after the sum total of the…

Q: What impact does each of the followingparameters have on the value of a call option?(5) Variability…

A: A call option provides certain rights to an individual regarding purchasing any stock at a strike…

Q: Treasury stock is generally accounted for by the?

A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares…

Q: Define Treasury stock.

A: Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the…

Q: Discuss the importance of market efficiency and explain why some markets are more efficient than…

A: Why Are Some Markets More Efficient than Others?1. Liquidity: More liquid markets are typically more…

Q: What is a stock’s volatility?

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

Q: Describe two conditions which will determine whether or not a stock is in equilibrium. Can either of…

A: Equilibrium refers to a state of rest or a situation where demand is equal to supply. At point of…

Q: How to use call options and put options to create a synthetic short position in stock?

A: An options are actually touted as one of common method for the profit from the swings of the market.…

Q: Define the term treasury stock.

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: How is EPS calculated if no preferred stock is involved?

A: EPS refers to Earnings Per Share. It is the amount of net income earned per one equity share held by…

Q: What type of variable is the New York stock exchange

A: Variable- It can be referred to as any measured characteristics or attributes that are different…

Q: What is risk and how is it measured? How is risk measured in a portfolio compared to risk in a…

A: Risk is measured by the amount of volatility, that is, the difference between actual returns and…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.