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vova2212 [387]
1 year ago
13

An investment that has earned a high rate of return over the last 5 years will necessarily continue to perform well in the futur

e. true or false
Business
1 answer:
bija089 [108]1 year ago
4 0

The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.

The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.

To learn more about investments, click here.

brainly.com/question/15105766

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Explain the roles of monetary and fiscal policy in causing and ending hyperinflation.
german

Answer:

Explanation:

Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.

The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.

Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.

3 0
3 years ago
An increase in​ income, holding prices​ constant, can be represented as A. a change in the slope of the budget line. B. a parall
Lisa [10]

Answer:

Option (B) is correct.

Explanation:

If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.

Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.

5 0
3 years ago
Asset deflation: Multiple select question. reflects a decline in the productive capacity of assets and therefore reduces potenti
Eduardwww [97]

Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.

<h3>What is an asset deflation?</h3>

This refers to the general reduction in the value of firm's assets such as lands, homes, office, machine etc \.

Most time, the firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.

Therefore, the Option A is correct.

Read more about asset deflation

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7 0
2 years ago
Explain one situation when you will use these two pricing strategies penetration pricing and skimming prices
Dominik [7]

Answer:

An electronic news portal that offers one complimentary month for something like a free trial service or an institution that offers a free bank account for 6 months are both instances of penetration pricing.

A pricing technique known as price skimming is establishing a premium charge when other rivals enter the market. For instance, the Playstation 3 was initially priced at $599 in the United States, but has now been lowered to around $200.

5 0
3 years ago
When firms are said to be price takers, it implies that if a firm raises its price: a. buyers will go elsewhere. b. buyers will
MatroZZZ [7]

Answer:

The correct answer is a. buyers will go elsewhere.

Explanation:

This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.

3 0
3 years ago
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