Investor demand for high rate of return

Related BrainMass Solutions

• Why Investors Demand Higher Expected Rates of Return

  Since diversification reduces the specific risk of an investment, the rate of return is not as high as an investment high in market risk.

• Why Investors Demand Higher Expected Rates of Return on Stocks

  A has an expected return of 10% and a volatility of 15%, while B has an expected return of 10% and a volatility of 25%. No investor will buy B, because he would be getting more risk for the same expected return as A.

• Supply and Demand for Investment Capital

  438123 Supply and Demand for Investment Capital California clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share.

• Risk and Return in Financial Markets

  Conversely, if I had a high tolerance for risk, then I would choose to invest in items like equities, derivatives and foreign currency swaps. By doing so, my expectation would be that I could generate a very high rate of return.

• Investor's Holding Period Return

  An investor in England purchased a 91-day T-bill for $987.65. At that time, the exchange rate was $1.75 per pound. At maturity, the exchange rate was $1.83 per pound. What was the investor's holding period return in pounds? 3.

• Required rate of return and market price of the stock

  =32.61 Since P0 is $25, which is less than the equilibrium price, there will be high demand for the share.

• Indifference curves and government economic activity

  t care what rate of return he or she receives B. the investor doesnâ??

• Risk and Reward with Stocks

  He is a type of investor who is willing to assume a high degree of risk for as long as the expected return is high. For a lower risk security or form of investment, a promise of a higher return may not be necessary.

• Calculate performance for Apple, Juniper, Time warner

  An investor can change or revise his portfolio on the basis of return or risk involvement in the portfolio. Every investor wants to invest his money in those securities, which provide a high return at a low level of risk.