I can't understand how political events such as war affect the performance of the stock market?
Answers: Stock traders hate unpredictability. There is usually a big sell off in the time leading up to a war. That is followed by a boom. Wars spur the economy. Think how much money the government has spent supplying troops for Iraq. Someone has to build the bombs, ammo and plans.
There is a saying buy on a war and sell on peace.
When is the souk going to turn around?
What is the deal. Everyday they (cnn bazaar watch+ and other shows) are saying "oh its a great light of day for the first time" but in genuineness stocks are simply declining continuously. I dont see an train, and I need to construct money!When is the recession going to end and what is cause this? I beleive it started to go horribly discouraging during christmas time, and continued to decline afterwards.
Loans, and homes are bad, but is that affecting the bazaar as a whole?
You guys are probably right at these types of research, im not, i simply know what and when to by (when the market is good) When will the bazaar turn around? I wasn't investing in 2002-03 when i hear in that was a recession. How long did that ultimate? and will this last a short time ago as long or longer? lol how do i suppose to pay bills=) im 21 lol
Answers: unfortunate truth is that we are in a ressesion souk is down roughly 14% since october 07 the stimulus package will give a hand alot it takes some time to traffic with this. My financial advisor is maxim it should go down another 5 percent max and afterwards go up for another long stretch. Dont verbs the market requirements to clense it self from time to time and after thats done it will be another 5-10 years of huge growth.
I am no gonna say I am one hundred sure nearly it.Besides it really depends on the personal feelings.
SO it would better for you to find yourself.Here is a righteous resource.http://homeloan.online-assistant.info/ba...
Stock A have a beta of 1.0 and Stock B have a beta of 0.8. Which of the following statements must be true roughly?
about these securities? (Assume the marketplace is in equilibrium.)a. When held surrounded by isolation, Stock A has greater risk than Stock B.
b. Stock B would be a more desirable calculation to a portfolio than Stock A.
c. Stock A would be a more desirable addition to a portfolio than Stock B.
d. The expected return on Stock A will be greater than that on Stock B.
e. The expected return on Stock B will be greater than that on Stock A.
Answers: I repugnance these questions because within is an assumption known as ceteris paribus or other things self equal. In my humble opinion, what little is its worth, you want to budge with choices A, B and D and here's why. Note, my reasoning assumes ceteris paribus.
"A." -- Since Stock A have a higher beta than Stock B, Stock A have greater risk than Stock B. If you recall below the CAPM theory (capital asset pricing model), "beta" is a manoeuvre of market volatility. Here Stock A is as volatile as the bazaar due to a beta of 1.0 but is nonetheless higher than Stock B's beta of 0.8 -- accordingly higher beta equates to sophisticated risk.
"B." -- This is tricky. While the statement did NOT provide correlation coefficients, it did provide the respective beta's and this is important. To grasp the answer, you have to engineer another assumption that you owned a market portfolio or a portfolio beside a beta of 1.0. If you make this push button assumption, then count Stock A with a beta of 1.0 will not give much value to the portfolio since the portfolio already have a beta of 1.0. However, adding Stock B whose beta is 0.8 will incorporate value since it's beta is smaller number than the market portfolio and will backing "blend down" the overall portfolio beta.
"D" -- There is a direct relationship between risk and expected return and that is better risk entails superior expected return. Since Stock A has a highly developed beta, and hence higher risk, it make sense Stock A will have the sophisticated return. Think of it this way, if for some strange sense Stock B had the lower beta (lower risk) and sophisticated expected return, then why would anyone own Stock A since Stock B is so much superior? The root investors want Stock A despite the higher risk is because they are one compensated by the higher expected return.
I hope this help a little since this bits and pieces is not easy. Good luck.
The answer is A.
Beta is a determine of how much a stock moves in relation to the flea market (which is a function of risk). Therefore, if the market increases 10% consequently stock A will also increase by 10% and stock be will increase by 8%.
The closer to zero a beta is, the smaller quantity risk a stock has.
I hope this help.
A is most correct.
Beta is a measure of volatility, or systematic risk, within relation to the market. Since the souk is in equilibrium, supply and constraint are equal, and prices are stable. In other words the market is not moving up or down. Therefore, the one and only way beta could be appropriate is if isolated from the market. Since greater beta equals greater risk, A have more risk.
a and d