Questions about risk Define unsystematic risk Name and explain the two sources of unsystematic risk Define…

  1. Questions about risk

    Place Order
  1. Define unsystematic risk

  2. Name and explain the two sources of unsystematic
    risk

  3. Define systematic risk

  4. Name and explain two sources of systematic risk
      

  1. Beta coefficient

  1. Explain the concept of the beta coefficient
      

  2. Suppose that the stock for Alphabet Inc, an american
    Technology conglomerate, had a beta coefficient of 1.3. If the
    return on as a whole will be 10% over the next year, what will be
    the return on investment over the next year? (assuming the beta
    coefficient for Google stock does not change).

    1. What is a balance sheet?

    2. What is an Income statement?

    3. What is the statement of cash flows?

      1. List and explain the two types of stock.

      2. What is a cash dividend?

      3. Suppose Netflix Inc. declares a $2 per share cash
        dividend with a distribution date of May 15th, 2019. The Netflix
        board of Directors declares that the date of record is Thursday,
        April 18th, 2019. When must the ex. Dividend date

      4. If the closing price of Netflix stock is $350 per share
        on the day before the ex dividend date, what will the price per
        share of Netflix stock be at the maximum open on the ex dividend
        date (assuming no other important dates occur that would impact
        Netflix’s business and that the cash dividend is $2 per
        share)?

      1. You have done an extensive analysis of the stock of the
        Boeing Company, an American multinational corporation that designs,
        manufactures, and sells airplanes, rotocrafts, rockets, satellites,
        and missiles worldwide. In the course of your analysis you
        determined that Boeing stock is currently trading at a price to
        earnings (i.e. P/E) ratio of about 16, with a minimum P/E ratio of
        12 and a maximum P/E ratio of 21. Currently the average P/E ratio
        for stocks in the aircraft manufacturing industry is 15, while the
        average P/E ratio for all of the stocks in the S&P 500 is 17.
        What do you conclude from this data?

      2. Bonds

      • Define principle bonds

      • Define Maturity date

      • Company holding your bond defaults