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2 years ago

When it comes to investing, what is the typical relationship between risk and return?

Business

2 answers:

Crank2 years ago

8 0

The correct answer is;

B .The greater the potential risk, the greater the potential return.

In order to run a business and convert an administrator, a person must have the ability to take and bear the risk. Risk presence is a key to any business.

When it approaches to investing, one general relationship between risk and reward is that taking more risk is correlated with a greater return. However, in many cases, there is no connection between the two. For example, even though stocks tend to have a higher return than relationships, taking that risk does not establish a genuine return.

The risk is the feasible amount of damage the business might have to face. While the return is the value of interest the business may receive.

bonufazy [111]2 years ago

5 0

D i would think im not shure thoe

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Assume the demand for crack cocaine is inelastic and that users get the funds to pay for their crack by stealing. Suppose that t

Kobotan [32]

Answer:

Total Revenue of Cocaine will increase.

Explanation:

Elasticity of demand is demand responsiveness to price change.

Price & Total Revenue have relationships as per Elasticity of Demand :

Elastic Demand >1 : Change in quantity demanded > change in price ; Price & Total Revenue negatively related.
Inelastic Demand < 1 : Change in quantity demanded < price change ; Price & Total Revenue positively related

Given : Demand for crack cocaine is inelastic. If government increases penalties on cocaine supply, number of dealers decrease.

Then , the supply of cocaine will fall. Supply Shortage will increase the price. However - because demand is inelastic , total revenue will increase as a result of price rise.

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2 years ago

When marketers target future buyers with sampling, coupons, and rebates while using publicity to target all customers in a parti

Akimi4 [234]

They are exhibiting management of the promotion mix in marketing.

To achieve a specific marketing goal, a promotional mix is an amalgamation of advertising techniques such as advertising, sales, public relations, and direct marketing. Typically, the promotional mix is only one component of a larger marketing strategy. You may select a few strategies or determine that a combined effect of every one of them will be most impactful for your advertisement.

The promotional mix is comprised of four components. Direct marketing, brand management, personal sales, and ad campaigns are some of them.

A promotional mix is a component of the total marketing plan, which would be the basic fundamental model used by many enterprises.

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4 0

1 year ago

Typically, the firms' lowest cost source of financing is ____________ as its cost is tax deductible and it also tends to offer t

Finger [1]

Answer:

Debt

Explanation:

Debt is the lowest cost source of financing because the interest return given to holders of debt has a tax shield (tax deductible) that is provided by the Section 11j of the Income tax Act.

The other sources of finance give a return in form of dividends. Dividends are are not tax deductible hence they attract a huge cost.

6 0

2 years ago

Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfo

inessss [21]

Answer:

The correct answer is letter "B": unfavorably; increases.

Explanation:

As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to increase the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -continuous increase in price due to continuous increase in demand- appear decreases.

However, if people have fewer sources of debt, private investment decreases, causing an unfavorable panorama for financial institutions offering large portfolios of assets.

8 0

2 years ago

Your portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The mutual fund has a po

pshichka [43]

Answer:

8.01%

Explanation:

Expected return on mutual fund = Risk-free rate + Market risk premium*Beta

Expected return on mutual fund = 3% + 7.7%*1

Expected return on mutual fund = 10.70%

Best estimate of the portfolio expected rate of return = Weight of mutual fund*Expected return on mutual fund + Weight of risk-free Treasury bills*Expected return on risk-free Treasury bills

Best estimate of the portfolio expected rate of return = 65%*10.70 + 35%*3

Best estimate of the portfolio expected rate of return = 0.08005

Best estimate of the portfolio expected rate of return = 8.01%

7 0

2 years ago