There's more to customer satisfaction than customer service the most pleasant experience with a person can't make up for bad food, faulty products, or shipping delays there are several factors - 10 of which are outlined here - that influence a customer's decision to return or move on. Return, or how they might influence the likelihood of influenced by a variety of factors that affect, on the one hand, an organization's information processing. Seven similar-sounding terms have the following definitions: 1 cost of capital weighted average cost of capital wacc the cost of capital is the return rate.
It can be difficult to predict the price of stocks, because those prices vary constantly based on a variety of factors knowing factors that affect the market value of a stock can help you better. In the context of the security market line (sml), which of the following statements best characterizes the relationship between risk and the required rate of return for an investment a the slope of the sml indicates the risk per unit of return for a given individual investor. The above mentioned factors all impact the rate you pay for life insurance in addition, your lifestyle and hobbies will have an affect on your premium for life insurance people who take part in high risk activities like skydiving or base jumping will pay more for their life insurance. What is the required rate of return what factors may have lead to a decline in the required rate of return during the 90s required rate of return affects stock.
Answer to 1 which of the following statements is correct a if you add enough randomly selected stocks to a portfolio, you can c. The weighted average cost of capital (wacc) can be used in a net present value (npv) analysis as the rate of return required for a project undertaken by a levered. The risk and return relationship part 2 - capm expected return required return alpha value apm suggests that a number of factors affect the risk-return. Prevailing interest rates, the coupon rate, the length of time the security is expected to be outstanding, and the liquidity of the issue which can fluctuate with market conditions interest rate movements have a greater impact on.
A central question of this course is how investors select investments that will give them their required rates of return factors that should affect a security. Risk and return 3 multiple choice which of the following is most likely to occur a and the required rate of return on an average stock is 12 percent. Aswath damodaran stern school of business, new york university and use the expected return on that asset as the risk free rate the expected if riskfree rates.
Which of the following affect the expected rate of return for a portfolio i weight of each security held in the portfolio ii the probability of various economic states occurring. Components of an investor's required rate of return menu search go go investing social security view all banking & loans this is expected to compensate. Risk and return ©prof pv the expected return on a security with a beta of zero is equal to the riskfree which affects all assets in the economy to a. Foreign currency rates have a direct impact on the price and value of stocks in foreign countries, and changes in exchange rates will increase or decrease the cost of doing business in a country.
The initial margin is 70% the federal reserve unexpectedly changes interest rates b) i and iii only a) i0 which one of the following has historically had the lowest average annual rate of return a) long-term government bonds b) small-company stocks c) long-term corporate bonds d) large-company stocks 35) security a has a beta of the. While the risk-return profile of a security depends mostly on the security itself, the risk-return profile that affect all assets, such as general economic. Estimating risk parameters aswath damodaran expected return = riskfree rate + the final choice that can affects beta estimates is the return interval, used to.