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Questions and Answers
Why do investors expect a benefit from organizations?
Why do investors expect a benefit from organizations?
- Because they want to support entrepreneurship
- Because they are required to by law
- Because they want a return on their investment (correct)
- Because they are charitable
What form does the cost of raising capital take for bonds?
What form does the cost of raising capital take for bonds?
- Interest and yields (correct)
- Rent and utilities
- Salaries and wages
- Dividends
What is the cost of raising capital for organizations?
What is the cost of raising capital for organizations?
- The benefit organizations receive
- The cost of production
- The cost of advertising
- The benefit investors receive (correct)
What form does the cost of raising capital take for equity?
What form does the cost of raising capital take for equity?
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What happens when a company issues investments internationally?
What happens when a company issues investments internationally?
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What happens as the amount of risk increases?
What happens as the amount of risk increases?
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Why does an investor diversify into investments that generate lower returns?
Why does an investor diversify into investments that generate lower returns?
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What happens to the rate of return when an investor continues to invest in the domestic market?
What happens to the rate of return when an investor continues to invest in the domestic market?
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When does an investor choose to invest in risk-free options?
When does an investor choose to invest in risk-free options?
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How does international optimization change the dynamic between risk and returns?
How does international optimization change the dynamic between risk and returns?
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