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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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Elan Coil [88]

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3 years ago

What are loans to a company or government for a set amount of.time. they earn interest and are considered low-risk investments.

irga5000 [103]

Answer:

b) bonds

Explanation:

Bonds are investment assets. Investors lend money to the government and corporates over a fixed period. In return, the company or the government pays a fixed amount of interest periodically until the agreed fixed period is over( maturity date). At maturity, the investor receives back the full amount he had loaned out (the principal amount).

Bonds are considered a low-risk investment option. Governments hardly default on their bond obligations. Companies that issue bonds to the public regulated and are less likely to default on payments.

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3 years ago

Pierce & Company provides the following information concerning the work in process at its plant:

Colt1911 [192]

Answer:

70,100 units and 53,244 units

Explanation:

The computation of the equivalent units for material and conversion cost using the weighted-average method is shown below:

For material

= Transferred out units × completion percentage + ending inventory units × completion percentage

= 50,500 units × 100% + 19,600 units × 100%

= 50,500 units + 19,600 units

= 70,100 units

For conversion

= Transferred out units × completion percentage + ending inventory units × completion percentage

= 50,500 units × 100% + 19,600 units × 14%

= 50,500 units + 2,744 units

= 53,244 units

We simply applied the above formulas

6 0

3 years ago

Abc generally causes the least amount of cost distortion among products because indirect costs are allocated to the products bas

mel-nik [20]

Answer:

Cost Drivers

Explanation:

Abc generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on cost drivers.

Activity Based Costing does not apportion indirect costs but allocates them to products based on the level at which they drive those costs.

Cost driving is based on which activities or overheads are used by a product and by how much does it use (drive) those activities.

8 0

3 years ago

Economists working for the united states have determined that the elasticity of demand for gasoline is 0.5. capcitymetro decides

Agata [3.3K]

Answer: Inelastic, Elastic

Explanation:

Demand for a good is inelastic when it is less than 1 and elastic when it is greater than 1.

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$e= \frac{70,000 - 61,000}{70,000} * \frac{2.00}{2.21 - 2.00}$

= $= \frac{9,000}{70,000}*\frac{2}{0.21}$

$=1.22$

Demand for capacity metro rides is elastic.

7 0

3 years ago