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jasenka [17]
2 years ago
13

Basic finance.After combing through the data, you have noticed that firms hiring Fishergraduates earn average abnormal returns o

f +3% per year over the next few years. Youare convinced that this is a genuine profit opportunity and so have decided to trade on it.You have $10,000 to invest and two options: (1) invest all $10,000 in one company thathas just hired a Fisher graduate; (2) invest $1,000 in each of ten companies that have justhired Fisher graduates. Which choice is preferable, or does it not matter?
Business
1 answer:
Ulleksa [173]2 years ago
4 0

Answer: (2) invest $1,000 in each of ten companies that have justhired Fisher graduates

Explanation:

This is the better option because if you invest all the money into one company, you stand a chance of losing all your money should the company fail.

It is better to invest in 10 companies that hired Fisher graduates. Why?

Diversification.

Diversification is investing in multiple investment vehicles to hedge your investments and ensure that you do not lose it all if one or a few investment go awry. By investing in 10 companies, you would be practicing diversification which would ensure that you do not lose it all on 1 company.

You also stand a chance to make more profit if a couple of those companies outperform your estimates.

Please do react or comment if you need any clarification or if the question was right so that you may help the next person. Thank you.

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The cash account of Grande Home Improvement Store shows the following:
melomori [17]

Answer:

a debt of $  27,000 is left in the cash account = -27,000

Explanation:

because when you add all the nos the debts become <em>negative numbers </em>

and when we add them we get a debt of  27,000 which is equal to -27,000

3 0
2 years ago
An important __________ for Medtronic's Micra pacemaker is its unmatched small size, about the size of a vitamin capsule, which
Keith_Richards [23]

Answer:

point of difference

Explanation:

From the question we were told that , "An important point of difference for Medtronic's Micra pacemaker is its unmatched small size, about the size of a vitamin capsule, that gives room for implantation directly into the heart without invasive surgery or the need for electrical leads.

This point of difference that Medtronic's Micra pacemaker has that ,make his vitamins available for implantation directly to the heart without surgery, is as a result of point of difference in a company gives a differentiation between him/her and his/her others organization or business offering the same services.

8 0
2 years ago
A firm selling its product for $25,000 has overproduced, increasing inventory by 40,000 units at a cost of $15,000 per unit. Wha
mario62 [17]

Answer:

Increasing Inventory by 40,000 units at a cost of $15,000 per unit

The Cost of producing 40,000 units extra = $40,000 *$15,000 = $600,000,000

Conclusion: As this is an additional cost incurred by the firm by increasing inventory by 40,000 unit at $15,000 per unit, it will be term as cash outflow.  The impact of the inventory change on cash flow is outflow.

8 0
2 years ago
The manager of the marketing team has thoughtfully selected team members with their strengths in mind to play roles based on the
hodyreva [135]

Answer:

The correct option is advisor.

Explanation:

In business, advisors can be described as persons who evaluate circumstances and suggest options as what could be done during different circumstances. These options are suggested for the benefit of the company and to lead it towards success. An advisor usually evaluates the business plan for a company.

In the above-mentioned scenario, Andy is entitled to evaluate particular situations and provide better options, hence she is playing the role of an advisor.

3 0
2 years ago
Read 2 more answers
Dominic and Matherson, a finance management company, lends money to Ebok, a fast food chain, in order to help Ebok market its ne
riadik2000 [5.3K]

Answer:

(A) Long- term debt

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Financing via issue of long term bonds represents long term debt financing.

Bonds refer to those securities issued by an issuer (or lender) to a borrower, bearing a fixed rate of interest payable on timely basis as well as repayment of principal at the end of the term.

Long term financing is generally for a period which is greater than one year. Usually long term financing is resorted to by a corporation when capital outlay of funds required, or investment in long term projects such as building, purchase of machinery etc which involve sizable funds.

Bonds carry interest obligation in the sense borrower has to pay interest on timely basis.

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