• Risk of the investment. A company or investor may insist on a higher required rate of return for what is perceived to be a risky investment, or a lower return on a correspondingly lower-risk investment.
• Liquidity of the investment. If an investment cannot return funds for a number of years, this effectively increases the risk of the investment, which in turn increases the required rate of return.
• Inflation. The required rate of return must be layered on top of the expected inflation rate. Thus, a high expected inflation rate will drastically increase the required rate of return.
Lellah answered the question on November 8, 2021 at 08:32
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A portfolio of investments consists of the following individual investments and their market values;
Required
Calculate the weighted HPY of the portfolio of investment
(Solved)
A portfolio of investments consists of the following individual investments and their market values;
Required
Calculate the weighted HPY of the portfolio of investment
Date posted:
November 8, 2021
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Answers (1)
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The data below relates to an investment;
Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
(Solved)
The data below relates to an investment;
Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
Date posted:
November 8, 2021
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Answers (1)
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An investment costs sh 250,000 and its worth sh 350,000 after being held for two years. Calculate;
1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
(Solved)
An investment costs sh 250,000 and its worth sh 350,000 after being held for two years. Calculate;
1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
Date posted:
November 8, 2021
.
Answers (1)
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Outline the methods used in carrying out risk analysis.
(Solved)
Outline the methods used in carrying out risk analysis.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
State and explain the different types of long term financing.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
State the disadvantages of using preference share capital.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of using preference share capital.
(Solved)
State the advantages of using preference share capital.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
Outline the classification of preference shares.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
Outline the factors influencing choice of finance.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
State the advantages of share capital as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of venture capital as a type long term financing.
(Solved)
State the disadvantages of venture capital as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of grants as a type long term financing.
(Solved)
State the disadvantages of grants as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of grants as a type long term financing.
(Solved)
State the advantages of grants as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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(Solved)
State the disadvantages of term loans as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of leasing as a type long term financing.
(Solved)
State the disadvantages of leasing as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of leasing as a type long term financing.
(Solved)
State the advantages of leasing as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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Discuss retained profit as a source of short term finance.
(Solved)
Discuss retained profit as a source of short term finance.
Date posted:
November 8, 2021
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Answers (1)
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Discuss loans as a source of short term finance.
(Solved)
Discuss loans as a source of short term finance.
Date posted:
November 8, 2021
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Answers (1)
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Briefly describe two sources of business finance.
(Solved)
Briefly describe two sources of business finance.
Date posted:
November 8, 2021
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Answers (1)
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State the regulatory functions of the Capital Markets Authority as provided by the Act and the regulations.
(Solved)
State the regulatory functions of the Capital Markets Authority as provided by the Act and the regulations.
Date posted:
November 8, 2021
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Answers (1)