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user100 [1]
2 years ago
14

Linda, who is now age 65, once purchased several townhomes near a local university at age 45. what kind of income is linda makin

g with the purchase of these properties?
Business
1 answer:
nasty-shy [4]2 years ago
4 0

Linda is making investments with these kinds of purchase.

What is an investmen?

  • Assets purchased or invested in with the intention of boosting wealth and allocating money from wages or capital gains are referred to as investments.
  • The main goal of an investment is to produce extra income or profit over a specific time period.
  • Investing is a smart way to put your money to work and could make you richer. If you make smart investing choices, your money may increase in value and outpace inflation.
  • The key causes of investment's greater growth potential are the strength of recurrence and the trade-off involving risk and return.

Buying an item at a bargain and then selling it for more money is the simplest way to comprehend how investing works.

The term for this kind of investment return is.

Learn more about investments here:

brainly.com/question/25790997

#SPJ9

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Novay_Z [31]

Answer:

The required rate of return on stock is 14.6% and option b is the correct answer.

Explanation:

The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.

The equation is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market

r = 0.05 + 1.2 * (0.13 - 0.05)

r = 0.146 or 14.6%

4 0
3 years ago
Because investors are often unwilling to buy stock in a company without any
Svet_ta [14]
B) going public

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4 years ago
recommend ways in which business can contribute some an effort to advance the well-being of others in business context in improv
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8 0
3 years ago
The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporati
lisov135 [29]

Answer:

$(52)

Explanation:

Calculation to determine the net pension asset/liability reported in the balance sheet at the end of the year

First step is to calculate the Ending PBO using this formula

Ending PBO=(Asset Beginning balance)+(Service cost)+(Interest cost)+(Loss on PBO)+Retiree benefits

Let plug in the formula

Ending PBO = $(880) + ($78) + ($44) + ($8) + $81

Ending PBO= $(929)

Now let calculate the Net pension liability

Using this formula

Net pension liability=(Ending PBO)+Ending balance

Let plug in the formula

Net pension liability = $(929) + $877

Net pension liability= $(52)

Therefore the net pension liability reported in the balance sheet at the end of the year is $(52)

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