All categories

2 years ago

A lower expected return means a higher risk will have to be accepted. true false

1 answer:

8 0

The statement "A lower expected return means a higher risk will have to be accepted. " Is false. This is further explained below.

<h3>What is the expected return?</h3>

Generally, According to the proverb, "A lower projected return indicates a bigger risk will need to be taken." Is false

In conclusion, The amount of profit or loss that an investor might anticipate obtaining as a result of the investment is referred to as the anticipated return. To get an anticipated return, first, multiply all of the possible outcomes by the percentage chance that each one will occur, and then add up all of those products. It is impossible to provide a guarantee on expected returns.

You might be interested in

Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,075 2 1,210 3 1,340 4 1,4

umka21 [38]

Answer:

the future value of the cash flow in year 4 is $5,632.73

Explanation:

The computation of the future value of the cash flow in year 4 is as follows:

= $1,075 × (1.08^3) + $1,210 × (1.08^2) + $1,340 × (1.08^1) + $1,420 ×(1.08^0)

= $1,354.19 + $1,411.34 + $1,447.20 + $1,420

= $5,632.73

Hence, the future value of the cash flow in year 4 is $5,632.73

The same is to be considered and relevant

6 0

3 years ago

The united states economy spends about as many months in recession as it spends in expansion. True or False

kobusy [5.1K]

Answer:

I think the answer will be true

8 0

3 years ago

Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and

Llana [10]

Answer:

maximum profit = $7500

so correct option is c $7500

Explanation:

given data

mean = 500

standard deviation = 300

cost = $10

price = $25

Inventory salvaged = $5

to find out

What is its maximum profit

solution

we get here maximum profit that is express as

maximum profit = mean × ( price - cost ) ..................................1

put here value in equation 1 we get maximum profit

maximum profit = mean × ( price - cost )

maximum profit = 500 × ( $25 - $10 )

maximum profit = 500 × $15

maximum profit = $7500

so correct option is c $7500

4 0

4 years ago

Use the indirect pattern when you need to soften or delay bad news until after an explanation is given. Understanding the four c

Trava [24]

Answer:

The correct answer is letter "B": Understanding.

Explanation:

While composing a text, the understanding buffering technique is helpful to show the reader the writer is concerned about what is being exposed. The buffering must provide a smooth transition to the explanation of the text. Thus, it must be written the most accurate possible.

5 0

3 years ago

Suppose the GDP of Australia is 100,000 AUD and the exchange rate between AUD and USD is 1.34 AUD=$1. What is the GDP of Austral

Hitman42 [59]

Answer:

The value of GDP in dollars = $74600

Explanation:

Given the GDP (gross domestic product) of Australia = 100000 AUD

Given the exchange rate, 1.34 AUD = $1.

Since we have given the total amount of GDP for Australia and exchange rate. Now we have to calculate the value of Australian GDP in the dollars. We can find this by dividing the total GDP with 1.34 AUD.

The value of GDP in dollars = 100000 / 1.34 = $74626.86 or $74600.

4 0

4 years ago