Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. REQUIRED How can you avoid the value of your stock from going down?
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Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her
investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500
even if she reinvested the 10 percent coupons paid on the bonds.
REQUIRED
How can you avoid the value of your stock from going down?
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- Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than stocks? Further explain why the price of many individual stocks still go down, even when the overall stock market goes up. How can you avoid the value of your stock from going down?Word Limit 200 words. Do not reproduce the question as part of your answer.Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,246 as at today. Had she invested that same amount in a Govea bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than stocks? Further explain why the price of many individual stocks still go down, even when the overall stock market goes up. How can you avoid the value of your stock from going down?Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest inbonds rather than stocks? Further explain why the price of many individual stocks still go down, even when the overall stock market goes up.How can you avoid the value of your stock from going down?
- Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest inbonds rather than stocks?Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as of today. Had she invested that same amount in a Government of Barbados bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest inbonds rather than stocks? Further explain why the price of many individual stocks still goes down, even when the overall stock market goes up.How can you avoid the value of your stock from going down?Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. a. Further explain why the price of many individual stocks still goes down, even when the overall stock market goes up. b.How can you avoid the value of your stock from going down?
- Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, ]why anyone would want to invest inbonds rather than stocks?Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. REQUIRED Why the price of many individual stocks still go down, even when the overall stock market goes up?Samantha told you that she invested $1,000 in a portfolio of large-company stocks five years ago and reinvested the dividends. Her investment grew to $3,456 as of today. Had she invested that same amount in a Government of Antigua bond she would have received $2,500 even if she reinvested the 10% coupons paid on the bonds. Given this information, why anyone would want to invest in bonds rather than stocks?
- Samantha told you that she invested $1,000 in a portfolio of large-company stocks five years ago and reinvested the dividends. Her investment grew to $3,456 as of today. Had she invested that same amount in a Government of Antigua bond she would have received $2,500 even if she reinvested the 10% coupons paid on the bonds. Required: Why the price of many individual stocks still go down, even when the overall stock market goes up?You were told that $1,000 was invested in a portfolio of large-company stocks 5 years ago and also the dividends were reinvested. The investment grew to $3,456 as at today. Had this same amount be invested in a Government bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than stocks? Further explain why the price of many individual stocks still go down, even when the overall stock market goes up. How can you avoid the value of your stock from going down?Suppose Alex has an opportunity to buy shares of Sunnyland Snacks Company. The shares are expected to pay a dividend of $2.50 per share in one year and to sell for $92.00 per share at that time. a. Suppose the current interest rate on safe assets is 5% and Alex believes that investing in Sunnyland is not risky. How much would Alex be willing to pay today for each share of the company? b. Suppose the current interest rate on safe assets is 5%. Alex is willing to pay at most $85.90 for each share of Sunnyland today. Calculate Alex’s risk premium.