What is an arbitrage opportunity? Discuss using an example (of your choice) and explain how an investor may exploit it to make (infinitely) large profits

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 sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: How do investors reduce investment risk by asset allocation and diversification?

A: Investment risk is a risk of potential financial loss built into the investment. For example:…

Q: Explain the features of venture capital.

A: A type of private equity funding known as venture capital is given to early-stage or fast-growing…

Q: What is the difference between a stock’s price and its intrinsic value? Why do investors and…

A:

Q: Explain the concept of intrinsic value, and critically appraise whether firms that have higher free…

A: In banking and investment, the idea of inherent value is crucial. Based on an asset's intrinsic…

Q: How would a researcher undertaking capital markets research typically justify that a particular item…

A: A capital market researcher needs to make an analysis of the capital market for investment purpose.…