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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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Question #1: Assume an initial starting Ft of 300 units, a trend (Tt) of eight units, an alpha of 0.30, and a delta of 0.40. If

Readme [11.4K]

Answer:

The forecast for the next period is 307.6 units

Explanation:

Write the formula to calculate exponential smoothing with trend.

Calculate the values of $FIT_{t-1}$ by substituting the values of the parameters in the formula.

Calculate the value of F₁ by substituting the required values

Calculate T₁

FIT₁ = F₁ + T₁

= 302 + 5.6

= 307.6

3 0

2 years ago

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34

Tpy6a [65]

Answer:

$69020

Explanation:

Selling price -$54

Incremental selling price =54*(1-0.16)=45.36

Incremental sales - 45.36*7000= 317520

Contribution -

Direct materials = 24*7000 = (168000)

Direct labor = 6*7000 = (42000)

Variable manufacturing = (21000) (3*7000)

Variable selling price = (3500) 2*(1-0.75)

Total contribution = 83020

Additional cost of machine (14,000)

Incremental profit 69,020

5 0

2 years ago

On the island of Mabera, the local money is called "favoli." The price of every good in Mabera is expressed as the number of fav

tatuchka [14]

<u>Answer:</u>

The correct option is Unit of account

<u>Explanation:</u>

One of the functions of money is Unit of accounts in economics. The worth of an object is measured in a distinct currency. One of the downfalls of unit of account is that it is regarded as the steady unit of account but inflation factor devastate the said assumption that money is steady. It is regarded as the basic property of the money.

Thus, the correct option will be Unit Of Account.

7 0

2 years ago

Read 2 more answers

You made an investment of $12,000 into an account that paid you an annual interest rate of 3.5 percent for the first 5 years and

Whitepunk [10]

Answer:

interest rate r = 6.78 %

Explanation:

given data

investment = $12,000

interest rate = 3.5 percent = 0.035

time = 5 year

interest rate = 7.9 percent = 0.079

time = next 15 year

to find out

What was your annual rate of return over the entire 20 years

solution

we get here interest rate as

interest rate r = $[(1+r)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1$ ...................1

here t1 is time period for first 5 year and t2 is time i.e next 15 year and r1 and r2 is rate

now put here value we get

interest rate r = $[(1+)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1$

interest rate r = $[(1+0.035)^{5} * (1+0.079)^{15}]^{\frac{1}{5+15}} - 1$

interest rate r = 1.0678 - 1

interest rate r = 0.0678

interest rate r = 6.78 %

4 0

2 years ago

Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not

vova2212 [387]

Answer:

The right solution is "Not Deductible".

Explanation:

If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:

Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.
The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it.
The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.

6 0

2 years ago