### Why does it usually hurt returns earned by investors

Assignment Help Finance Basics
##### Reference no: EM131304479

1. Suppose that Apple's profits are expected to grow twice as fast as Microsoft's. Which firm's stock should be the better investment? Briefly explain.

2. Henry Blodget worked for Merrill Lynch during the dot-com boom. The New York attorney general accused Blodget of having praised Internet stocks in public and criticized the same stocks in private. In a negotiated settlement, Blodget declined to admit wrongdoing but accepted a ban from the securities industry for life. He has gone on to write extensively on financial matters, including the following advice: The problem for investors is that even though stock-picking usually hurts returns, it's extremely interesting and fun. If you are ever to wean yourself of this bad habit, therefore, the first step is to understand why it's so rarely successful. What is "stock-picking"? Why does it usually hurt returns earned by investors? Why is it so rarely successful?

#### Checkmark which customer requirements

Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements and which technical requirements are related. Use "√" to show the

#### Calculate the npv of the decision to change credit policies

The required return is 2.5 percent per period. Current Policy New Policy Price per unit \$ 104 \$ 108 Cost per unit \$ 47 \$ 47 Unit sales per month 3,240 3,295 Calculate the NP

#### Finding break-even point

Air Filter, Inc., sells its products for \$6 per unit. It has the following expenses, Separate the expenses between fixed and variable expenses per unit. Using this information

#### What will be the value of each of these bonds

What will be the value of each of these bonds when the going rate of interest is (1) 5% (2) 8%, and (3) 12%? assume that there is only one more interest payment to be made o

You receive an investment newsletter advertisement in the mail. The letter claims that you should invest in a stock that has doubled the return of the S&P 500 Index over the

#### What price should you charge

Assume the demand curve has a constant slope.  If you had sufficient inventory, how many units would you sell at \$90? Assume your marginal cost is \$44 per unit.   Given only t

If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next year to be 3%, what is the lowest nominal r

#### What was the rate of inflation

You earned 10.3 percent nominal rate over the past year, but find that your purchasing power in terms of real stuff you can buy with your money has increased only by 5.2 per