All categories

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:

brainly.com/question/14850768

#SPJ4

You might be interested in

Difference between bookkeeping and accounting in table

Sladkaya [172]

Answer:

Bookkeeping is related to the recording measuring, and finding the financial data of a company and Accounting is the process where in the company's financial data is summarized, and a report is prepared for the same.

Explanation:

hope this will help you

3 0

3 years ago

Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflatio

strojnjashka [21]

Answer: c) Both economies grew at the same rate

Explanation:

The faster growing economy would be the one that saw a greater increase in Real GDP than the other.

Real GDP growth = Nominal GDP growth - Inflation growth.

Hyperpolis Real GDP growth = 15% - 12%

Hyperpolis Real GDP growth = 3%

Superpolis Real GDP growth = 6% - 3%

Superpolis Real GDP growth = 3%

<em>Both countries grew at the same rate of 3%. </em>

7 0

3 years ago

How would inflation impact on a start up business?

Mariana [72]

Answer:

Let's say that the value of the US dollar goes down due to inflation.

A startup business would have to pay more money to it's employees, spend more money on products, try and charge the same prices, and lose a lot of money. Essentially, more money would be going out than coming in.

5 0

3 years ago

Which of the following is not a reason to chose a community college?

anzhelika [568]

C. Or at least that seems to be the most likely. There are only two similar possible answers which is normally a clue that one of them is wrong and you should be choosing based off how it will benefit you not how it is easier on you.

Hope this helps!

3 0

3 years ago

Read 2 more answers

The top management at Vermilion Inc. realized that there were some technical defects in the company's new manufacturing plant th

harkovskaia [24]

Answer: (C) Controlling

Explanation:

The controlling is one of the type of management function that helps in managing the various types of organizational function and also it helps in achieve the desirable goals.

It basically take various types of corrective actions for effectively managing the resources and also helps in improving the performance of the company.

According to the given question, the controlling is one of the management function that efficiently illustrating the given scenario.

In the vermilion inc, the top management of the company realized that at the time of construction of the plant shows some technical defects and the technical specialists of an organization try to resolve the given issue.

Therefore, The given process is known as the controlling management function.

4 0

3 years ago