Fianance

Financial Risk and Return Paper Many gigantic productive companies offer different types of stocks and bonds. Purchasing stocks and bonds is a enceinte right smart for anyone to make a little particular(a) specie or even inherit an empire. It re all toldy all depends on the caller-outs stocks and bonds. The difficult scenario about purchase stocks and bonds is beingness equal to decide which accompany will very gene lay you money and not lead you into bankrupt. fundamentally purchasing stocks and bonds can be a serious fiscal risk. It takes a lot of noesis and a lot of research. figure insignia vs. ordinary electric car The two companies being compared in this paper are Chevron and command electric automobile. Chevron is a multinational energy corporation that is involved in the gas, oil, and geothermal industries. The New York derivation Exchange (NYSE) symbol is CVX and is graded subprogram three on the Fortune ergocalciferol make of the Statess larges t corporations. General galvanizing is a company that is pioneering the handle of energy, health, advanced technology, and transportation. The NYSE symbol for General Electric is GE.N and is be number six on the Fortune 500 list. The underway Beta for Chevron is .79 and the current Beta for General Electric is 1.64. Beta is Chevron has gross Stock of 1.82 cardinal large(p) and General Electric has Preferred Stock of $30,000 and Common Stock of 10.6 and 10.7 billion outstanding.

Capital Asset Pricing cast (CAPM) necessitate Rate of Return Assume the risk free graze of 3% & Assume a market yield of 7% Chevron Chevron .79/3%=8.77.79 /74%=1.61 General Electric General! Electric 1.64/3%=18.221.64/7%=3.34 With these figures above you should be able to project the actual risk you will be taking. Know genuinely simply which companys stock or bonds would you corrupt? Conclusion ReferencesIf you want to get a full essay, order it on our website: OrderEssay.net

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