Question

As treasurer for ACME Corp., you invest assets into used cars and also into the stock...

As treasurer for ACME Corp., you invest assets into used cars and also into the stock market. This year you have some money to allocate to research. You may either hire a stock market advisor who would provide you with research or hire an expert mechanic. Given the theories, which should you hire? Or don't hire any of them?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Its better to hire a stock market advisor who can give valuable feedbacks on which stocks to invest than hiring a mechanic. Stocks are appreciating assets and hence proper knowledge about quality of stock can maku us aware about the value stocks. If succeeded the investment can earn multifold returns.

Whereas repairing used car using expert mechanic wont we fruitful as user cars are already highly depreciated assets. Therefore wont be providing significant returns even if use an expert mechanic to repair

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are a financial advisor who offers investment advice to your clients. There are two risky...
You are a financial advisor who offers investment advice to your clients. There are two risky assets in the market: portfolio X and portfolio Y. X has an expected return of 15% and standard deviation of 35%. The expected return and standard deviation for Y is 20% and 45% respectively. The correlation between the two portfolios is 0.2. The rate of risk-free asset, T-bill, is 5%. a) Peter is one of your clients and he can only invest in T-bill...
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly...
WHAT HAPPENS WHEN YOU BARTER WITH STOCK? Does It Matter Whether It’s Treasury Stock or Newly Issued Stock? Clyde:              I acquired this land for my business by issuing stock. I did not pay a penny. Since it’s my stock, and I decided how much to give up for the land, does that mean I get to determine the value of the land on my balance sheet? Fredrika:         You could have issued the stock to somebody else, taken the cash received,...
‏____ 25. You recently sold to your brother 200 shares of Disney stock, and the transfer...
‏____ 25. You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of: a. A futures market transaction. b. A primary market transaction. c. A secondary market transaction. d. A money market transaction. e. An over-the-counter market transaction. ‏____ 26. Which of the following statements is CORRECT? a. The New York Stock Exchange is an auction market with a physical...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks,...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks, Mr Kitces says, your first consideration should be how comfortable you are with risk to begin with. This is what’s known as your ‘risk tolerance. ’ The problem: Investors — particularly young ones — are notoriously bad at predicting how much money they are willing to lose. Compounding the problem, young investors, due to their lack of experience in the markets and overall financial...
In 2010, Tim and Teri decide to form a new S-corporation, TTP Corp., under the New...
In 2010, Tim and Teri decide to form a new S-corporation, TTP Corp., under the New Columbia Business Corporation Act for their high-end women's clothing manufacturing business. Tim and Teri are the only owners of this company. They enter into a shareholders agreement in which they call the interests in the company "corporate pieces," they do away with the board of directors, and agree to co-manage the business. Tim and Teri are both very savvy business people, having run their...
Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they...
Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they moved through the firm’s sales organization, they became (and still remain) close friends. Walt, who is 33 years old, currently lives in Princeton, New Jersey. Shane, who is 35, lives in Houston, Texas. Recently, at the national sales meeting, they were discussing various company matters, as well as bringing each other up to date on their families, when the subject of investments came up....
The questions: 1. What type of technology Acme and Omega utilize to transform inputs into outputs?...
The questions: 1. What type of technology Acme and Omega utilize to transform inputs into outputs? 2. Which strategic choice (differentiation or cost leadership) suits best to Acme? Omega? Do these companies have clear strategic choices or do they stuck in the middle? 3. Based on all the contingencies which type of structure is more suitable for these companies; mechanistic or organic? please answer each question alone The Paradoxical Twins: Acme and Omega Electronics John F. Veiga Part! boom of...
Sam Fulkerson of Quality Research Asoociates reviewed notes of meetings with his clients during the last...
Sam Fulkerson of Quality Research Asoociates reviewed notes of meetings with his clients during the last week. Monday/am Discussions with Janey Dean, Director of Marketing for the Hamptons Bank. Dean is interested in knowing more about a bank image study. Informed her that we had not conducted such a study, but that i would meet with her in a week and discuss how to proceed. Dean wants to hire us for advice; her own staff may actually do the image...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills,...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills, online shopping, coffees, vouchers, food,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT