Finance

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

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

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

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

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

<p>Return on risky asset- return on non risk asset</p> Signup and view all the answers

<p>Risk of isolated asset</p> Signup and view all the answers

<p>Smaller return than invested</p> Signup and view all the answers

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

<p>Higher risk = better return</p> Signup and view all the answers

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

<p>Measured tightness of distribution and variability</p> Signup and view all the answers

<p>Standard deviation/ expected return</p> Signup and view all the answers

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

<p>Reduced risk, when you add assets</p> Signup and view all the answers

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

<p>B=1 - average, B&gt;1 - more risky, B&lt;1 - less risky</p> Signup and view all the answers

<p>Weighted average of stock betas</p> Signup and view all the answers