Question

If a security has mean-zero cash flows... A. it is worth zero right now. B. it...

If a security has mean-zero cash flows...

A. it is worth zero right now.

B. it is a positive NPV investment.

C. it has the beta of the market portfolio.

D. it is identical to investing in a Treasury bill.

"All things have a natural price, and this price is connected to the cost." Such a statement would have been made by which of the following?

A. Thomas Aquinas

B. a Nominalist (like Roger Bacon)

C. a Franciscan intellectual

D. All of the above would have made an assertion like this.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If a security has mean-zero cash flows...

A. it is worth zero right now.

B. it is a positive NPV investment.

C. it has the beta of the market portfolio. (ANSWER)

D. it is identical to investing in a Treasury bill.

Explanation: When a security has beta identical to market, it will rise and fall with the fluctuation of market. Thereby, it will have mean zero cash flow.

"All things have a natural price, and this price is connected to the cost." Such a statement would have been made by which of the following?

A. Thomas Aquinas

B. a Nominalist (like Roger Bacon)

C. a Franciscan intellectual

D. All of the above would have made an assertion like this. (ANSWER)

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
Decision #1:   Which set of Cash Flows is worth more now? Assume that your grandmother wants to...
Decision #1:   Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift.  She wants you to choose which one of the following sets of cash flows you would like to receive: Option A:  Receive a one-time gift of $ 10,000 today.     Option B:  Receive a $1400 gift each year for the next 10 years.  The first $1400 would be      received 1 year from today.               Option C:  Receive a one-time gift of $17,000 10 years from today. Compute...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows on a mortgage-backed security B. the risk that you will receive the cash flows sooner than expected and be forced to invest at a lower rate. C. the risk that you will receive the cash flows later than expected and not be able to invest at current, higher rates. 12. Based on the video Inside the Meltdown, it appeared that the main reason Lehman...
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp....
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp. has a return on investment (ROI) of 12% and a weighted average cost of capital (WACC) of 11%, while XYZ Corp. has an ROI of 10% and a WACC of 8%. In this situation, XYZ is performing better than ABC because XYZ is generating a higher Economic Value Added (EVA) b) If you were super rich and had a huge portfolio of stocks that...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which of the following statements is CORRECT? * a. The bond sells at a price below par. b. The bond has a current yield less than 10%. c. The bond sells at a discount. d. a & c. e. None of the above 2. J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING:...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING: a. Voting/Proxy Rights b. Right to Dividends c. Residual Right d. Pre-emptive Right e. Right to Interest Payments 10 points    QUESTION 2 Your best friend's parents want to buy a home in the Worcester County, but they don’t know the exact amount of money that they can afford to borrow. They can afford monthly payments of $ 1,800. A friendly bank in Worcester...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
DIRECTIONS: This is an open book, take home examination. You may look up the answers and...
DIRECTIONS: This is an open book, take home examination. You may look up the answers and discuss them, if you wish. The Multiple Choice questions will be worth 1 point each and the essay questions will be worth 25 points each. This examination is over Chapters 6 through 9. MULTIPLE CHOICE: 1. During Piaget's concrete operational stage, children a. are more egocentric than they were during the preoperational period. b. often confuse appearances with reality. c. are unable to reverse...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described itself as "a quarterly survey of business leaders from across the globe … surveying 11,500 businesses in 40 economies across the globe on an annual basis." 1 According to the 2011 IBR, the Asia Pacific region had a higher percentage (27 percent) of female chief executive officers (CEOs) than Europe and North America. Japan is the only Asia Pacific region exception. The report further...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT