2. Analysts sometimes suggest that firms should outsource low value-added
activities. Do you agree or disagree?
I agree with this statement because firms should outsource activities that cost
themselves more than it would cost
Final Project Log
7:30:00 PM Idea Brainstroming, Water in Africa, Soap in Africa, Secondary Food in India
8:00:00 PM Hangout for idea decision
3:00:00 PM Food Deserts
OF STOCK A AND B
Covariance of return, Cov(r A,rB)
If E(ri) = E(rM), then i = 1
E(ri) = rf + i[E(rM) - rf]
A firm with a beta of 1 earns the market return
because if E(ri) = E(rM), i = 1. So basically,
E(ri) = rf + i [ E(rM) - rf ]
E(ri) = rf + (1) * [E(rM)-rf]
Chapter 10: Portfolio Returns and the Efficient Frontier
- You should diversify your investments to lower your risk
- The best investment depends on your willingness to trade off return for additional risk.
Chapter 9: Statistics for Portfolios
- Stock prices, dividends, and returns produce mounds of data for statistics to interpret.
Basic Statistics for Asset Returns
- Mean- the higher the average, the better
- Standard Deviation- a
Chapter 8: What is Risk?
- Have you considered the risks?
- Risk = the variability of returns from an asset over time.
The Risk Characteristics of Financial Assets
- Short term and long term assets
- Some long term assets