10 Questions
Why do investors expect a benefit from organizations?
Because they want a return on their investment
What form does the cost of raising capital take for bonds?
Interest and yields
What is the cost of raising capital for organizations?
The benefit investors receive
What form does the cost of raising capital take for equity?
Dividends
What happens when a company issues investments internationally?
The costs associated with raising capital decrease
What happens as the amount of risk increases?
The rates of return increase
Why does an investor diversify into investments that generate lower returns?
Because the best investment opportunities are exhausted
What happens to the rate of return when an investor continues to invest in the domestic market?
It decreases as the investor reaches a point of diminishing returns
When does an investor choose to invest in risk-free options?
When the best investment increases risk more than the expected rate of return
How does international optimization change the dynamic between risk and returns?
It changes the potential dynamic between risk and returns in several important ways
Learn about the benefits and costs of expanding investments and investing internationally, including the expectations of investors and the costs of raising capital for organizations.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
