Liabilities having relative variable returns

Assignment Help Financial Management
Reference no: EM131356131

1. Which of the following is typically concerned with their investment assets having relatively fixed returns and their liabilities having relative variable returns?

banks

insurance companies

mutual funds

pension funds

2. If an investor wants to invest 100% of her portfolio in safe assets but does not want to manage her portfolio, she should invest in __________.

a money market fund

a growth stock fund

several different money market instruments

several different stocks

Reference no: EM131356131

Questions Cloud

Tax liability on its ethiopian subsidiary : Tailor Johnson, a U.S. maker of fine menswear, has a subsidiary in Ethiopia. This year, the subsidiary reported and repatriated earnings before interest and taxes (EBIT) of 232 million Ethiopian birrs. What is Tailor Johnson's U.S. tax liability on i..
The firm estimates it can sell new shares of stock : Wear Ever is expanding and needs $10 million to help fund this growth. The firm estimates it can sell new shares of stock for $25 a share. It also estimates it will cost an additional $250,000 for filing and legal fees related to the stock issue. The..
Interest compounded monthly by depositing : James starts saving at the age of 25 in an annuity which is paying 4% interest compounded monthly by depositing $200 every month till the age of 35. He then gets a much better job and starts saving $600 every month till the age of 55.. However, with ..
Correlation matrix for google during last calendar year : Correlation matrix for the Google during the last calendar year. (2015 yahoo data). Standard deviation for Google and for the portfolio during the last calendar year. (2015 yahoo data). Sharpe ratio for google and for the portfolio during the last ca..
Liabilities having relative variable returns : Which of the following is typically concerned with their investment assets having relatively fixed returns and their liabilities having relative variable returns? If an investor wants to invest 100% of her portfolio in safe assets but does not want t..
Life insurance companies seek long term investments : When life insurance companies seek long term investments, they are focusing on________.
Mortgage with a teaser rate-effective interest rate : A mortgage broker is offering a 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 6.2 percent APR interest rate. After the second year, the mortgage interest charged increases t..
Choice of three retirement-planning investments : Dixon Shuttleworth has been offered the choice of three retirement-planning investments. The first investment offers a 5 percent return for the first 5 years, a 10 percent return for the next 5 years, and a 20 percent return thereafter. Determine, fo..
How many shares of stock must the firm sell : Wear Ever is expanding and needs $9 million to help fund this growth. The firm estimates it can sell new shares of stock for $40 a share. It also estimates it will cost an additional $350,000 for filing and legal fees related to the stock issue. The ..

Reviews

Write a Review

Financial Management Questions & Answers

  Improve home-buying process-increase overall satisfaction

Describe some of the steps homebuyers can take to improve the home-buying process and increase their overall satisfaction. The text has covered the major issues we should look for when going through the house purchasing process. What are some of the ..

  Nonconstant growth stock valuation

Nonconstant Growth Stock Valuation Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 7%. If the last dividend paid (D0) was $3, what is the value per share of your firm..

  Bond issue outstanding with an annual coupon rate

Delta Corporation has a bond issue outstanding with an annual coupon rate of 7% and 2 years remaining until maturity. The par value of the bond is $1,000. Determine the price of the bond if present market conditions justify a 14% required rate of ret..

  What is the companys wacc

What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

  How many blouses needed to be replaced

A buyer discovered that 5% of the merchandise he received was damaged during shipping. The manufacturer agreed to replace the blouses. If he ordered 300 blouses, how many blouses needed to be replaced?

  From the corporate issuer viewpoint-zero-coupon bond

From the corporate issuer viewpoint, a zero-coupon bond allows the firm to.

  What are the objectives and uses of accounting

What are the objectives and uses of accounting and who are the users of accounting information? How is accounting related to other disciplines of business management?

  Yen exchange rate and pound exchange rate

Suppose the Japanese yen exchange rate is ¥110 = $1, and the British pound exchange rate is £1 = $1.55. What is the cross-rate in terms of yen per pound? Suppose the cross-rate is ¥175 = £1. What is the arbitrage profit per dollar?

  Create a call option that you wish to price

Create a call option that you wish to price and input into the model. -  How would you use the results of the model in your portfolio strategy?

  Calculate sustainable growth rate

You have located the following information on Webb’s Heating & Air Conditioning: debt ratio is 54 percent, capital intensity is 1.10 times, profit margin is 12.5 percent, and the dividend payout is 25 percent. Calculate the sustainable growth rate fo..

  What would be the net cash flow from above activities

What would be the net cash flow from above activities? Dividend income received by a corporation. Which of the following as a business entity pays federal income tax?

  Find the expected return on the stock using the capm model

CAPM is one of the more popular models for determining the risk premium on a stock. If the Expected Return on the Market Portfolio is 9.10%, the Risk-Free Rate is 2.0%, and the Beta for Stock i is 0.9. Find the Expected Return on the Stock using the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd