Explain the differences between the arithmetic return and the geometric return. Include in your explanation what factor determines the difference between arithmetic returns and geometric (compounded) returns.

Description How do you feel about the following statement: “Avoiding risks is the biggest risk of all”? That statement may seem contradictory at first, but it makes more sense if you apply the concept to various situations in life and business. For example, many people pursue a college degree because they feel it will increase […]

Discuss the reason why capital investment projects should be evaluated for risk in the present, and how risk might be involved in future planning and/or forecasting. Pick a typical healthcare project to evaluate and consider the risk factors involved in the situation. How could you determine what is most important and might be the most critical sources of risk? Based on what you find, how would management mitigate those risks?

Discuss the reason why capital investment projects should be evaluated for risk in the present, and how risk might be involved in future planning and/or forecasting. Pick a typical healthcare project to evaluate and consider the risk factors involved in the situation. How could you determine what is most important and might be the most […]

What are some of the difficulties that might come up in actual applications of the various investment rules? Elaborate.

Description Instructions • You have to answer all questions by yourself. Don’t share your work with others. • You are reminded of the necessity for clear and orderly presentation in your answers. Please show all steps of your workings and computations clearly. Otherwise marks will be deducted. Your assignment will also be assessed based on […]

Undertake appropriate financial analysis and make recommendations on capital structures, business valuation and investment alternatives.

Learning Outcomes Tested in this Assignment: 1. Present critical insights of the finance functions in an organization. 2. Undertake appropriate financial analysis and make recommendations on capital structures, business valuation and investment alternatives.

Why does the yield change through time but the coupon rate does not?Explain

3 | P a g eClients Financial Questions: (25 marks) •Your client considered investing in either debt securities or equity securities and would like to know what are the main characteristics that distinguish the return on debt securities from the return and on equity securities? (12 marks) •Why does the yield change through time but […]

How many months will it take to pay off a $10,000 balance on a credit card that has an APR of 18%, assuming you charge no additional money on the card and make regular monthly payments of $175? hint: you need to use the Excel NPER function and enter the payment as a negative number.

TVM Excel Problems — Valuation of Future Cash Flows 1. What is the implied discount rate in an annuity product that costs $50,000 today and pays the owner twenty annual payments of $3,000? hint: you need to use the Excel RATE function and enter the payment as a negative number. 2. How many months will […]

With reference to case law, explain the various problems that beneficiaries face when challenging a trustee’s investment decisions.

Notwithstanding the provisions of sections 1, 4 and 5 of the Trustee Act 2000, it is still difficult for beneficiaries to establish that the trustees are liable for breach of trust through improper investment decisions. With reference to case law, explain the various problems that beneficiaries face when challenging a trustee’s investment decisions.