Earlier this year, you had to make a decision to buy a stock…
Earlier this year, you had to make a decision to buy a stock and it is now the end of the year. You know that the stock that was under consideration at the beginning of the year had an expected return of 14% at the time of purchase. You estimated the required return of the stock to be 10%. You have now calculated the realized return of the stock to be 12%. At the end of the year, you are evaluating your investment over the past year. You will evaluate your investment by comparing ________ returns. Based on these returns, your initial decision was a ________ decision.
Read DetailsCurrently the market interest rate is less than my bond’s co…
Currently the market interest rate is less than my bond’s coupon rate. As a result, my bond should sell for ______ than $1,000 which would classify it as a ______ bond. Hint: Is it attractive or unattractive compared to the market?
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