Question

Out of a stock, bond, or fund which financial element better suits a business’s interest? Which...

Out of a stock, bond, or fund which financial element better suits a business’s interest?

Which of these is better suited for a college?

Why or why not would it be different than a for profit entity?
Which element can be more risky and why is it more risky?

Homework Answers

Answer #1

Stock suits the business's interest as it's indeed volatile and one can make huge profits with the matter of moments on the whole. Funds can better be suited for a college as it assists the entire education process on the whole. It would be different than a profit entity as there's less risk of losing money and the money can be served for a particular purpose. Stock can be more risky as the stock market prices are indeed highly volatile which can even fetch you nothing at times.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The financial account consists of which four components? stock investment, bond investment, derivative investment, and mutual...
The financial account consists of which four components? stock investment, bond investment, derivative investment, and mutual fund investment direct investment, stock investment, net financial derivatives, and bond investment direct investment, portfolio investment, net financial derivatives, and other asset investment mutual fund investment, portfolio investment, derivative investment, and stock investment
If you had the choice to purchase common stock or preferred stock from your company, which...
If you had the choice to purchase common stock or preferred stock from your company, which would you choose? Why? Which is more risky? Which is the better deal? Your opinion should be based on your research and cited.
The bond market and stock market are two important types of financial markets. Which market would...
The bond market and stock market are two important types of financial markets. Which market would you prefer to use for your investments and why? In your answer, highlight at least three advantages and three disadvantages for your choice.
Which of the following statements about sinking fund is true? (why is C correct?) a) A...
Which of the following statements about sinking fund is true? (why is C correct?) a) A company would prefer to use sinking fund to call bond if bond sells at a discount price. b)Sinking funds are designed to protect bondholders, so it never hurts the bondholders in any situations. c)A company would use sinking fund for open market purchase of bond if the interest rate is much higher than its coupon rate. d) A company would prefer to use sinking...
1.Scott's financial planning firm issued a bond with a coupon rate of 10% and a current...
1.Scott's financial planning firm issued a bond with a coupon rate of 10% and a current yield of 11%. The yield to maturity on this bond is 14%. Find the market price of this bond if it pays interest semi-annually and has 10 years to mature? 2.The bond market is considerably larger than the stock market. In your opinion, why is this? Why do companies choose to finance their projects with debt so often? 3.Which database is most useful for...
Joe Finance has just purchased a stock-index fund, currently selling at $1800 per share. To protect...
Joe Finance has just purchased a stock-index fund, currently selling at $1800 per share. To protect against losses, Joe plans to purchase an at-the-money European put option on the fund for $90, with exercise price $1800 and three-month time to expiration. Sally Calm, Joe's financial advisor, points out that Joe is spending a lot of money on the put. She notes that three-month puts with strike prices of $1750 cost only $70, and suggests that Joe use the cheaper put....
Joe Finance has just purchased a stock-index fund, currently selling at $1800 per share. To protect...
Joe Finance has just purchased a stock-index fund, currently selling at $1800 per share. To protect against losses, Joe plans to purchase an at-the-money European put option on the fund for $90, with exercise price $1800 and three-month time to expiration. Sally Calm, Joe's financial advisor, points out that Joe is spending a lot of money on the put. She notes that three-month puts with strike prices of $1750 cost only $70, and suggests that Joe use the cheaper put....
Use excel or financial calculator A bond has the following features: Coupon rate of interest (paid...
Use excel or financial calculator A bond has the following features: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: 10 years What will the holder receive when the bond matures? -Select-Principal/ All coupon payments If the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? Assume that the bond pays interest annually. Round your answer to the nearest dollar. $   Would you expect the firm to...
A 7-year maturity convertible bond with a 8% annual coupon on a company with a bond...
A 7-year maturity convertible bond with a 8% annual coupon on a company with a bond rating of AAA is selling for $1,113. Each bond can be exchanged for 20 shares, and the stock price currently is $50 per share. Other AAA-rated bonds with the same maturity would sell at a yield to maturity of 9%. What is the value of the implicit call option on the bond? (Round your answer to 2 decimal places.) 5 of 6 points   Riskless...
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year....
Colonial Funds claims to have a bond fund which has performed consistently throughout the past year. The variance of the share price is claimed to be 0.170.17. To test this claim, an investor randomly selects 2121 days during the last year to check the performance of the fund. He finds an average share price of $19.80$⁢19.80 with a standard deviation of 0.23230.2323. Can the investor conclude that the variance of the share price of the bond fund is different than...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT