What is the difference between the direct method and


What is the difference between the Direct Method and Indirect Method for calculating Cash Flow? Explain how the two methods are reconciled and also provide a brief description of each method.

1-List 3 reasons for diversifying a portfolio via international investing

2. What is the risk factor associated with international investing that potentially can also be viewed as a benefit [and hence, a 4th reason to invest internationally -- see question #1]. IF this factor is trending favorably for your investment portfolio, briefly explain why it is a benefit

On a risk/return basis, rank order the following asset classes from lowest to highest based on the following data. (a) Small stocks: E(r) = 18.15% and standard deviation = 36.94%; (b) Large stocks: E(r) = 11.50% and standard deviation = 20.14%; (c) US Treasury bonds: E(r) = 5.45% and standard deviation = 8.06%; How would this rank order change if the return for each class [i.e., the E(r)] were each reduced by a 3% inflation factor?

 

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Finance Basics: What is the difference between the direct method and
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