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2 years ago

Investor perception on the risk of bonds will raise their desired return.

Business

1 answer:

faust18 [17]2 years ago

3 0

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

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Answer you are told that metal x is a better reducing agent than metal y. this must mean that:

natta225 [31]

Metal X can dispose of unwanted materials quicker and is therefore a better reactant. Please mark Brainliest!!!

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4 years ago

During 2017, Sheridan Company expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Sheri

vovangra [49]

Answer:

The $885,000 was transferred to Finished Goods

Explanation:

The computation of the transferred amount to finished good is shown below:

= Material used + labor cost + overhead cost

where,

Overhead cost = (Expected overhead ÷ estimated labor) × actual labor cost

= ($300,000 ÷ $200,000) × $150,000

= 1.5 × $150,000

= $225,000

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Now put these values to the above formula

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3 years ago

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.

ch4aika [34]

The company's degree of operating leverage is 1.29.

The degree of operating leverage(DOL) quantifies how much a company's operating income fluctuates in response to a change in sales.

The DOL ratio helps analysts determine the impact of changes in sales on company earnings.

A company with high operating leverage has a high proportion of fixed costs, which means that a large increase in sales can result in large changes in profits.

Using the formula for degree of operating leverage we get:

Degree of Operating Leverage = Contribution Margin/Operating Income

= $85200/$66200

= 1.29

Hence, The company's degree of operating leverage is 1.29.

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2 years ago

Given a normal market demand curve for unleaded gasoline, if the price of shipping a gallon of gasoline rises from $.50 per gall

Bingel [31]

Answer:

d. decrease in quantity demanded of unleaded gasoline.

Explanation:

Since the shipping cost of a gallon of gasoline is increased from $0.50 per gallon to $0.75 per gallon that reflect the increase in price

As the price is increased, the quantity demanded of unleaded gasoline is decreases as the shipping cost increases which affect the other factors

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3 years ago

John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, D

ivolga24 [154]

Answer:

a) December 31, 2013 Owner's equity = 508,000

b) December 31, 2014 Owner's equity = 420,000

Explanation:

Accounting Equation Formula: Owner's Equity = Assets - Liabilities

A) Way to Go LLC December 31, 2013

Owner's Equity = Assets – Liabilities

Owner's Equity = 669,000 – 161,000

Owner's Equity = 508,000

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Owner's Equity = Assets – Liabilities

Owner's Equity = (669,000-127,000) – (161,000-39,000)

Owner's Equity = 420,000

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3 years ago