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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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Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the

omeli [17]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Month - Lease cost - Machine hours

April: $15,000 - 800

May: $10,000 - 600

June: $12,000 - 770

July: $16,000 - 1,000

Using the high-low method, first, we need to determine the unitary variable cost. We need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (16,000 - 10,000) / (1,000 - 600)

Variable cost per unit= $15 per unit

Now, we can calculate the fixed costs:

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 16,000- (15*1,000)

Fixed costs= $1,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 10,000 - (15*600)

Fixed costs= $1,000

6 0

1 year ago

Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years.

Effectus [21]

Answer:

The amount to be paid for the contract today = $220,908.32

Explanation:

The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.

Present Value = A ×( 1 - (1+r)^(-n))/r

A- 22,500, r- rate of return - 8%, n -no of years 20 years

PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08

PV = 22,500 ×9.8181

PV = $220,908.32

The amount to be paid for the contract today = $220,908.32

7 0

2 years ago

If a firm has high current and quick ratios, this always is a good indication that a firm is managing its liquidity position wel

ohaa [14]

Answer:

True

Explanation:

Current and Quick ratio shows the liquidity position of the company. It shows that how much assets are available to company to pay off its liabilities if it becomes due in short period of time. High current and quick ratio make the company strong and it will have enough asset to deal with its obligation than with low current and quick ratio.

4 0

1 year ago

Seller agrees to supply all gasoline fire needs for the next year three dollars per gallon. After three months the price of gas

vazorg [7]

Answer:

B. buyer must pay $2.33 per gallon for the rest of the year.

Explanation:

The correct answer is B. The seller agrees to supply gasoline for next year at $3 per gallon, the buyer agreed to it. When the gasoline prices declined the buyer insisted to reduce price and seller agreed to it. When the prices rise again the seller asked to raise price but buyer refused. Buyer cannot terminate the contract instead it has to continue buying at $2.33 per gallon if the seller is agreed to sell on this price for the rest of the year.

4 0

1 year ago

Helen Heartwell flew to New York City a few weeks after the September 11, 2001, bombing of the World Trade Center. She wanted to

Ymorist [56]

Answer:

Phenomenological

Explanation:

Helen Heartwell flew to New York City a few weeks after the September 11 , 2001, bombing of the World Trade Center . She wanted to know how the victims of the attack were making sense of what had happened to them . Dr. Heartwell is probably employing Phenomenological qualitative research design.

Phenomenological is the study in which we can study about the phenomena of the human as they experienced in real pr may they lived that.

There are two main approach of Phenomenological they are descriptive and interpretive . In recent time , Phenomenological is used widely in any field. It considered the important aspect which a person experienced or lived , but not interested in the explanation .

6 0

1 year ago