Finance

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Potential additions to fixed assets

Low= better, pros: shows risk, easy, cons: no tvm, ignores outside payback, and no wealth max

Low= better, pros- uses tvm, shows risk, easy, cons- no wealth max, not outside payback

High=better, pros- tvm, non normal use, reinvest at cost, ALWAYS correct con- hard Signup and view all the answers

High= better, pros: tvm, liked, all cfs used, cons- hard, can conflict, not no normal use, reinvest at irr Signup and view all the answers

High= better, pros- tvm, liked, reinvest at cost, all cfs, non normal, cons- conflict Signup and view all the answers

Investors like return not risk, all risk= risk averse, expected rate could be high enough to compensate Signup and view all the answers

Return on risky asset- return on non risk asset Signup and view all the answers

Risk of isolated asset Signup and view all the answers

Smaller return than invested Signup and view all the answers

Financial result of investment, historic or expected, received- invested Signup and view all the answers

Higher risk = better return Signup and view all the answers

Weighted average of weighted returns, weight = probability, low= weak Signup and view all the answers

Measured tightness of distribution and variability Signup and view all the answers

Standard deviation/ expected return Signup and view all the answers

Alternative measure of stand alone risk, higher is better, realized-rate/ std deviation Signup and view all the answers

Reduced risk, when you add assets Signup and view all the answers

B, slope/ stock moving up and down, measured market risk (relevant risk), volatility of market risk Signup and view all the answers

B=1 - average, B>1 - more risky, B<1 - less risky Signup and view all the answers

Weighted average of stock betas Signup and view all the answers

Potential additions to fixed assets for a company.

How long it takes to recover the initial investment of a project.