Questions
How do you make decisions that are expected to generate income? At different stages of your...

How do you make decisions that are expected to generate income?

At different stages of your life, you will evaluate investment options based on the expected cash flows that they are likely to produce – a process that hopefully will help you to make informed decisions. Think about the various way you might invest money to generate income in the future, and how you will make these types of decisions. For this assignment, suppose that you have been given $10,000 with the requirement that you "invest" it in one of the 3 different options below. Research the expected return and associated risk for each of the following:

  • Pay down your student loan or credit card debt. Although this is not technically an investment, it is effectively the same as earning a "risk-free" rate of interest. Alternatively, you can keep the cash in a riskless (FDIC insured) bank account. Current rates are available on a number of different sites such as Bankrate.com.
  • Invest in any stock(s) of your choice. Research the company on Yahoo Finance or other financial site, and get statistics regarding the expected risk and return for this investment. Be very specific about why you selected this company.
  • Invest in a real estate rental property. Research property prices, rents, and expenses for residential income properties or get basic information from a property management site such as Mashvisor or Roofstock. Note that a "cap rate" or "cash-on-cash" return is like a dividend yield for a stock, and is calculated as net operating income (rental income less expenses) divided by the price.

There are no wrong answers, but you must justify your opinions using the concepts that you have learned in this course. Be sure to include all factors used in making your evaluations, and be specific about your conclusions. To receive full credit, your answers must be well thought out and well-written.

Answer ALL 4 questions below:

  1. Before making any calculations, which option appeals to you the most?
  2. What methods would you use to evaluate these options? Compare each option in terms of current yield, potential for appreciation, and estimate an approximate long-term total return.
  3. Which option offers the best potential return given its level of risk? Which one would you choose given your level of risk aversion? Explain in detail.
  4. What sort of capital investments do you think you might make in the future? What other investments (such as owning your own company or investing in a start-up) would you consider? Why? Are there any factors in addition to monetary gain that you would consider?

In: Advanced Math

How do you make decisions that are expected to generate income? At different stages of your...

How do you make decisions that are expected to generate income?

At different stages of your life, you will evaluate investment options based on the expected cash flows that they are likely to produce – a process that hopefully will help you to make informed decisions. Think about the various way you might invest money to generate income in the future, and how you will make these types of decisions. For this assignment, suppose that you have been given $10,000 with the requirement that you "invest" it in one of the 3 different options below. Research the expected return and associated risk for each of the following:

  • Pay down your student loan or credit card debt. Although this is not technically an investment, it is effectively the same as earning a "risk-free" rate of interest. Alternatively, you can keep the cash in a riskless (FDIC insured) bank account. Current rates are available on a number of different sites such as Bankrate.com.
  • Invest in any stock(s) of your choice. Research the company on Yahoo FinanceLinks to an external site. or other financial site, and get statistics regarding the expected risk and return for this investment. Be very specific about why you selected this company.
  • Invest in a real estate rental property. Research property prices, rents, and expenses for residential income properties or get basic information from a property management site such as Mashvisor. or Roofstock. Note that a "cap rate" or "cash-on-cash" return is like a dividend yield for a stock, and is calculated as net operating income (rental income less expenses) divided by the price.

There are no wrong answers, but you must justify your opinions using the concepts that you have learned in this course. Be sure to include all factors used in making your evaluations, and be specific about your conclusions. To receive full credit, your answers must be well thought out and well-written.

Answer ALL 4 requirements below:

  1. Before making any calculations, which option appeals to you the most?
  2. What methods would you use to evaluate these options? Compare each option in terms of current yield, potential for appreciation, and estimate an approximate long-term total return.
  3. Which option offers the best potential return given its level of risk? Which one would you choose given your level of risk aversion? Explain in detail.
  4. What sort of capital investments do you think you might make in the future? What other investments (such as owning your own company or investing in a start-up) would you consider? Why? Are there any factors in addition to monetary gain that you would consider?

Just need a brief response to each requirement if possible, thanks.

In: Finance

Consider the following stock information about Tencent and HSBC State of economy Probability of State of...

Consider the following stock information about Tencent and HSBC

State of economy Probability of State of economy Returns if state occurs
Tencent HSBC
Bad 0.3 -10% -5%
Good 0.7 15% 12%

a. What’re the expected return on each stock?
b. What’re the standard deviation on each stock?
c. The risk free rate is 1.5%. Based on the CAPM, If Tencent’s market beta is 1.5, what’s the beta of HSBC?
d. If you invested 65 percent in Tencent and 35 percent in HSBC, what is your portfolio expected return? The standard deviation?
e. Given the portfolio information in (d) and beta information in (c), what is the portfolio’s market beta?

In: Finance

Question 5 Consider the following stock information about Tencent and HSBC State of Economy Probability of...

Question 5

Consider the following stock information about Tencent and HSBC

State of Economy

Probability of State of Economy

Returns if State Occurs

Tencent

HSBC

Bad

0.30

-10%

-5%

Good

0.70

15%

12%

  1. What’re the expected return on each stock?
  2. What’re the standard deviation on each stock?
  3. The risk free rate is 1.5%. Based on the CAPM, If Tencent’s market beta is 1.5, what’s the beta of HSBC?
  4. If you invested 65 percent in Tencent and 35 percent in HSBC, what is your portfolio expected return? The standard deviation? .
  5. Given the portfolio information in (d) and beta information in (c), what is the portfolio’s market beta?

In: Finance

Question #1: Compare and contrast a job order costing system and a process costing system -...

Question #1: Compare and contrast a job order costing system and a process costing system - include an example of when each might be used

Question #2: Explain in detail what the term "equivalent units" means. How is it used in Accounting and/or what is its purpose

In: Accounting

Navigate to the threaded discussion and respond to the following prompts: How is policy practice similar...

Navigate to the threaded discussion and respond to the following prompts:

How is policy practice similar to and different from planned changed at the micro level?

What social policies are in place should your clients need protection from oppression and discrimination?

What social policies impact your clients' interaction with their social environment?

How can you observe and learn from the testimony of professionals about the social policies being considered in your state?

In: Psychology

A new advertising program involves placing small screens on the back of taxi front seats in...

A new advertising program involves placing small screens on the back of taxi front seats in order to run several advertisements continuously. The theory is that riders give their undivided attention to these ads during the entire trip. To understand the potential of the advertising program, advertisers would like to first learn about the length of time of taxi rides. Random samples of the taxi ride times (in minutes) in two cities were obtained. Please assume that the distributions are normal. The summary data are given in the following table. You will not need to use the information from all the rows. Please provide three decimal places for all work and answers unless explicity mentioned otherwise.

Length of Taxi Ride (minutes) n s
San Diego 28 20.32 6.191
Phoenix 28 15.39 5.773
San Diego - Phoenix 28 4.93 8.119

a) Should this situation be analyzed via a two-sample independent or two-sample paired method? Note that you will only get one try to get this question correct.Please explain the correct answer. If this is a paired situation, please state the common characteristic that makes these data paired.

b) What is the alternative hypothesis for this situation?Please explain the correct answer.

c) Is there any evidence to suggest the true mean lengths of the taxi rides are different in the two cities? Use α= 0.01.

i) Calculate the test statistic. Be sure that the information for San Diego is first and the information for Phoenix is second.

ii) Calculate the p-value. Please submit 4 decimal places.

iii) Write the complete four steps of the hypothesis test below.

iv) Please show all of the code for part c) below.

d) Calculate the 99% confidence interval or bound for the mean. If you are calculating a bound, type 10000 to indicate ∞.

e) Interpret the interval or bound calculated above. In addition to the interpretation, please state the critical value.

f) Please show all of the code for part d) below.

g) In practical terms, does the data imply that the true lengths of taxi rides are different in the two cities? Please explain your reasoning. This part uses the information from parts c) and d). However, if your explanation only involves inferential statistics, you will receive 0 points.

h) What would change in this analysis if the cities were reversed; that is, we used Phoenix – San Diego instead of San Diego - Phoenix? Would the conclusion change? Please explain your answer.

In: Statistics and Probability

Ratio analysis is important to all businesses regardless of product or service sold. Each industry has...

Ratio analysis is important to all businesses regardless of product or service sold. Each industry has averages benchmarks in which to compare your companys’ individual performance. Please think about and answer the following questions. Remember, these questions are asking for you to be creative and answer the question, ‘HOW’, I am looking for real possibilities that you might try to accomplish in ‘your’ company.

1. Choose EITHER a service or product that you are producing and selling. Tell me about your product or service company.

2. Your Accounts Receivable Turnover Rate is 4.7; are you please with this? Why or why not? What if anything will you do in the future to attempt to adjust this?

3. The Return on Equity is 11%, the Return on Total Assets is 8%. What does this tell me about the company? Is this a good situation to be in? Why or why not?

4. Explain how a vertical analysis and a horizontal analysis differ. Give examples of when you would use each one.

In: Accounting

Ratio analysis is important to all businesses regardless of product or service sold. Each industry has...

Ratio analysis is important to all businesses regardless of product or service sold. Each industry has averages benchmarks in which to compare your companys’ individual performance. Please think about and answer the following questions. Remember, these questions are asking for you to be creative and answer the question, ‘HOW’, I am looking for real possibilities that you might try to accomplish in ‘your’ company.

1.Choose EITHER a service or product that you are producing and selling. Tell me about your product or service company.

2.Your Accounts Receivable Turnover Rate is 4.7; are you please with this? Why or why not? What if anything will you do in the future to attempt to adjust this?

3.The Return on Equity is 11%, the Return on Total Assets is 8%. What does this tell me about the company? Is this a good situation to be in? Why or why not?

4.Explain how a vertical analysis and a horizontal analysis differ. Give examples of when you would use each one.

In: Accounting

2. Suppose that a box is known to contain 50 red and 25 blue marbles. Two...

2. Suppose that a box is known to contain 50 red and 25 blue marbles. Two marbles are to be drawn in succession. The first marble is set aside and its color noted. It is not placed back into the box before the second marble is drawn.

a. Sketch a probability tree which represents this situation.

b. What is the probability that the second marble is red, if the first marble is red?

c. If the second marble is blue, what is the probability that the first marble is red?

In: Statistics and Probability