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2 years ago

Use what you have learned about risk and return to complete these sentences.

Business

2 answers:

vfiekz [6]2 years ago

4 0

Answer:

To minimize risk, investors should investigate the market and diversify its portfolio.

Interest that builds on the principle and the interest already gained is compound interest

Money invested in a CD always have a fixed rate of return and is less risky than money used to purchase a home.

Shtirlitz [24]2 years ago

4 0

Answer:

To minimize risk, investors should diversify there Portfolio

Interest that builds on the principal and the interest already gained is Compound interest

Money invested in a CD is more liquid than money used to purchase a home

Explanation:

Portfolio diversification is a technique used by investors to reduce the risk associated with their investment portfolio by ensuring they spread the money for their investment in asset of different class and of different risk.

Portfolio diversification means ensuring investment is on assets that have negative correlation, i.e. assets that do not move in the same direction in terms of returns.

Compound Interest is when interest for the first period of an investment is calculated and added to the principal before computing the interest for the next period, and so on.

A CD which is a abbreviation for Certificate of Deposit is a financial instrument issued by banks and other financial institutions to customers who want to invest their money and earn interest income. Money invested in a CD is always for a fixed period of time till maturity.

Money invested in real Estate take a longer time to realize than the money invested in CD,

The money invested in CD is more liquid than the money used to purchase a home.

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According to the video game industry’s statistics, the average gamer is 34 years old. Imagine the standard deviation for age is

Natalka [10]

Answer:

lower range 33.822 years

upper range 38.178 years

Explanation:

step 1:

48 -1 = 47

step 2:

(1 - 95%) / 2 = 0.025

step 3:

we look at the T distribution table for degrees of freedom (df) = 47, and α = 0.025; = 2.0117

step 4:

divide sample standard deviation by square root of sample size

7.5 years / √48 = 7.5 / 6.9282 = 1.0825

step 5:

multiply results from step 3 and 4

2.0117 x 1.0825 = 2.178

step 6:

for the lower range, subtract step 5 from sample mean

36 - 2.178 = 33.822

step 7: for the upper range, add step 5 with sample mean

36 + 2.178 = 38.178

6 0

2 years ago

The table below shows a summary of Kaitlin's credit card statement for the month of February.

den301095 [7]

Answer:

A) 32 percent interest B) Yes it will be paid

Explanation:

23 times 42 divided by 7

6 0

2 years ago

Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp

cricket20 [7]

Answer:

P14 = $55.69545045394 rounded off to $55.70

Explanation:

The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,

P0 = D1 / (r - g)

Where,

D1 is the dividend expected in Year 1 or next year

g is the constant growth rate in dividends

r is the discount rate or required rate of return

To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362 rounded off to $1.67

Now using the equation for Price as provided by the DDM model,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394 rounded off to $55.70

6 0

2 years ago

The sales for January, February, and March are $150,000, $180,000 and $220,000, respectively. For any particular month of sa

Gekata [30.6K]

Answer:

Total cash= $193,000

Explanation:

Giving the following information:

Estimated sales ($):

January= $150,000

February= $180,000

March= $220,000

40% in cash from that same month of sales

50% in cash from the previous month's sales

10% in cash from the sales from two months ago

C<u>ash collection March:</u>

From March= 220,000*0.4= 88,000

From February= 180,000*0.5= 90,000

From January= 150,000*0.1= 15,000

Total cash= $193,000

3 0

2 years ago

Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value

kramer

Answer: $1,227

Explanation:

The value of the futures contract should be calculated by the formula;

= Stock Index Value * ( 1 + risk free rate ) - dividends

= 1,200 * ( 1 + 0.06) - 45

= $1,227

8 0

2 years ago