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Running head: WEEK FIVE ASSIGNMENT1Week Five AssignmentGrand Canyon UniversityWeek Five Assignment
WEEK FIVE ASSIGNMENT2Best case and worst case returnsInvestment yields evaluate the monetary outcomes of investments. They can be expressed in bothpercentage terms and dollar terms. The yield is $1,100 - $1,000 = $100.The proportion return is $100 / $1,000 = 0.10 = 10%.T- BillsThe eight percent T-bill yield do not rely on the economy state since the Treasury have to convertthe bills at face value despite economic situation.T-bills are free of risk in the risk default sense as the eight percent yield will be achieved in everyprobable economic state. Nevertheless, this yield is comprised of the actual riskless rate, say 3%,and an inflation of 5%. Considering risk of inflation is present, it is questionable as the obtained actual return rate would match the forecasted three percent.Additionally,if there is an investment of T-bills portfolio, and then the rates decreased, there would be a drop in the nominal income. Therefore, there is an assumption that riskless securities do not exist in the U.S. Repo Men’s returnsThe returns of Alta vary with, consequently are absolutely associated with economy, company’s revenues, and thus profit experience the various kinds of boom and recession likes the economy. Alta will boom with the economy. Repo is perceived by different investors as a hedge in severe periods and increasing inflation. Therefore if there is a drop in the stock market, investors should
WEEK FIVE ASSIGNMENT3perform comparatively well in this stock. Repo Men stocks are therefore negatively associated

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