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2 years ago

How does the relationship between risk and expected return serve to allocate capital in a market?

1 answer:

7 0

The relationship between risk and expected return serves to allocate capital in a market. Investors want to maximize return for a given level of risk, so capital flows to its most efficient use.

There is a positive correlation between the level of risk taken and the level of return expected. The greater the risk, the greater the expected return and the greater the likelihood of suffering a large loss.

The relationship between risk and expected return is called the risk-return relationship. This is a positive relationship because the more risk you take, the higher the required return that most people demand. Risk aversion describes a positive risk-reward ratio.

Learn more about risk and expected return at

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Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term

victus00 [196]

Answer:

total debt ratio = 0.3532

Explanation:

given data

total assets = $485,390

net fixed assets = $250,000

current liabilities = $23,456

long-term liabilities = $148,000

to find out

total debt ratio

solution

we get here total debt ratio that is express as

total debt ratio = ( current liabilities + long-term liabilities ) ÷ total assets ........1

put here value we get

total debt ratio = $\frac{23456+148000}{485390}$

total debt ratio = 0.3532

4 0

3 years ago

In portfolio management the ____ task should occur first

kompoz [17]

You should put all projects in one list

3 0

3 years ago

The Parvizians own several oriental rug stores in and around the Washington, DC, metropolitan area. It is expected that as each

Alex777 [14]

Answer:

The correct answer is (b)

Explanation:

It is generally said that if you’re in a family business you are in a partnership. The partvizians is a family which owns several rug stores. When their children will take over the business they will be considered partners. They will own the business equally and they will share the profits and losses. It is also known as a family-owned business where two or more family members run a business and act as business partners.

6 0

3 years ago

Values are Group of answer choices a. The deeply held convictions that influence your thinking when you are faced with choices b

skelet666 [1.2K]

Answer:

a. Deeply held convictions that influence your thinking when you are faced with choices

Explanation:

A conviction refers to a firmly held belief of an individual.

An individual forms his values from his family, friends and people around which gradually shape perspective.

Values determine how an individual behaves socially, what constitutes morally right and what is not. They govern the ethical behavior of an individual.

Values are personal in nature in the sense those ain't generally acceptable principles. Those differ from individual to individual. They determine the course of action of an individual when faced with challenges and alternatives.

3 0

4 years ago

Assuming that the total manufacturing costs are $3,400,000, compute the cost of goods manufactured using the information below.

kirill115 [55]

Answer:

c. $ 3,409,000

Explanation:

Computation of cost of goods manufactured

The cost of goods manufactured is calculated by adjusting the opening and closing work in process balances to the total manufacturing input

Total manufacturing input $ 3,400,000

Add: Opening work in process $ 27,000

Less: Closing work in process <u> $ ( 18,000)</u>

Cost of goods manufactured $ 3,409,000

The cost of goods manufactured is determined by the total of the input and adding the differnce in opening and closing work in process balances.

5 0

3 years ago