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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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If your friend Raheem asks you, “What type of account should I use to save for retirement,” what would you tell him?

SSSSS [86.1K]

Answer:

Roth IRA account

Explanation:

The best type of account that you should save money in for Retirement is a Roth IRA account. This will allow you to put and save a maximum of $5,500 USD per year which will compound annually with interest and can be redeemed when you retire. Once you redeem your money at the age of 65 1/2 it will be completely tax-free. Meaning you have no liabilities with that money whatsoever and you can simply enjoy your retirement with that money.

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2 years ago

Angelica Canizales is the CEO of Mucho Dinero Enterprises. Sales have dropped for four consecutive years and accountants have re

FinnZ [79.3K]

Angelica's decision to completely redesign Mucho Dinero's organization indicates that she believes the best approach to her firm's problems is

A. restructuring.

Explanation:

Angelica has found that the problem that riddles her company is not something from the outside that can be cured from bailing out certain elements but comes from within in that it is imbibed in their own structure as a firm.

This means that they are lacking in communication between different structures inside the company. So the restructuring of the functional structures keeping in mind communication flow can do the trick for the firm.

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2 years ago

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when

Lera25 [3.4K]

Answer:

Total variable cost if 4 units were produced

= $33.75 x 4 units = $135

Total fixed cost = Total cost - Total variable cost

Total fixed cost = $175 -$135

Total fixed cost = $40

Average fixed cost = Total fixed cost/No of units

Average fixed cost = $40/10 units

Average fixed cost = $4

The correct answer is B

Explanation:

In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.

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2 years ago

In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.

Gala2k [10]

In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.

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2 years ago

Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbindin

tamaranim1 [39]

Answer:

A price ceiling is a bar on the legal maximum price a commodity can be sold for while a price floor is the least legal price a commodity can go for.

The price ceiling is always greater than the price floor in this case it is not so, hence the price floor is not binding to the price ceiling.

the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.

Explanation:

1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

Statement one is neither a price ceiling nor a price floor and it is nonbinding

2. The government has instituted a legal minimum price of $1.80 each for donuts.

Statement two is a price floor and it is binding.

3. The government prohibits donut shops from selling donuts for more than $1.10 each.

Statement three is a price ceiling and it is binding.

3 0

2 years ago