Cameron White

Discussion account for FN310

[Cameron White @cwhitefn310]

@syatesFN310 How long it will take to cover a projects cost and start seeing profits. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 Yes! Positive NPV projects increase wealth for the company and shareholders.

[Cameron White @cwhitefn310]

@syatesFN310 NPV is the best possible measure of a projects profitability. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 accept NPV if it is greater than or equal to zero. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 NPV, IRR, MIRR, and payback period. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 How companies manage their money to fund projects #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 here!

[Cameron White @cwhitefn310]

@syatesFN310 Me. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 Changes can lead to optimism or pessimism in investors causing what they are willing to pay for the rate of return to change.

[Cameron White @cwhitefn310]

@syatesFN310 It changes what an investor is willing to pay to achieve their required rate of return. #Fn310Chat

[Cameron White @cwhitefn310]

@syatesFN310 by comparing the rate of return to the markets rate of return. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 It proposes that any stocks required return is equal to the risk free rate plus a risk premium. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 It affects all investors equally. It is systematic and cannot be avoided. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 If well-diversified then it should have little to no affect on the investor. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 Diversifiable risk is risk that can be cancelled out by diversifying a portfolio. Market risk is inevitable. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 A higher rate of return generally means a riskier investment so a risk averse investor would typically avoid. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 Stand alone risk focuses on one single asset, portfolio risk is entire portfolio. #FN310Chat

[Cameron White @cwhitefn310]

@syatesFN310 It was tricky because I haven't taken stats in quite a while.

[Cameron White @cwhitefn310]

@syatesFN310 Hello!

[Cameron White @cwhitefn310]

@syatesFN310 to discount the bond. #FN310Chat
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