How much would you need to invest to get a return of $1.00 from an investment wi
ID: 2708172 • Letter: H
Question
How much would you need to invest to get a return of $1.00 from an investment with a price per share of $36 with earnings per share of $1.80?
Answer
$1.00
$1.80
$20
$35.20
$180.00
Buying shares of foreign stock generally
Answer
is not as risky as buying common stock.
is riskier than buying shares of domestic stock.
has higher transaction costs than preferred stock.
a. and b.
a., b., and c.
The risk that your foreign investment will lose value because of the actions, inactions, or instability of the foreign government is called
Answer
regulatory risk.
political risk.
economic risk.
currency risk.
market risk.
$1.00
$1.80
$20
$35.20
$180.00
Buying shares of foreign stock generally
Answer
is not as risky as buying common stock.
is riskier than buying shares of domestic stock.
has higher transaction costs than preferred stock.
a. and b.
a., b., and c.
The risk that your foreign investment will lose value because of the actions, inactions, or instability of the foreign government is called
Answer
regulatory risk.
political risk.
economic risk.
currency risk.
market risk.
Explanation / Answer
Question 1: For $1.8 of earnings we have to buy a share for $36 then for $1 of earning the share price is
$1.8 ------> $36
$1 -------> ? => $36/1.8 = $20
Hence, Option C is correct
Question Number 2
has higher transaction costs than preferred stock
Question 3 :
political risk.
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