1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oduvanchick [21]
3 years ago
13

1. Suppose you owned a portfolio consisting entirely of long-term U.S. government bonds. Would your portfolio be riskless?

Business
1 answer:
Ilya [14]3 years ago
7 0

Answer:

<em>In theory, both are riskless but in practicality they aren't completely risk free.</em>

Explanation:

<em>In investment theory</em>, the investment in government bonds is <em>riskless </em>, irrespective of the investment maturity period because they are backed by the government.

However, <em>in practicality</em> every investment involves risk whether it's a short term or long term. However, a short term investment like the one specified in <em>statement 2</em> involves lower time frame and thereby lower volatility, hence it implies <em>lower risk</em>. The investment specified in <em>statement 1</em> is of longer term and hence can involve higher volatility, hence it implies <em>higher risk.</em>

<em><u>Note</u></em><em>- All the governments are prone to risk practically</em> because they are also part of the global financial and economic system and hence, they have to manage their budget balances prudently. Every investment thereby involves <em>risk</em>, it's just the <em>financial backing</em> of the <em>government financial</em> <em>instruments</em> which makes them less risky as compared to the other financial instruments.  

You might be interested in
Consider the following story: When Joe didn't have renter's insurance, he was very careful not to leave candles lit in his apart
Andreas93 [3]

Answer:

b. Moral hazard

Explanation:

Joe has Moral hazard problem because he feels that he is protected in some way from risk, thereby acting differently than when he didn't have the insurance protection.

4 0
3 years ago
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each Jun
Vinvika [58]

Answer:

Interest expense = $20,000

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  </em>

The annual installment is computed as follows:  

Annual installment= Loan amount/annuity factor  

Annual installment is already given as = 37,258 (already given)

Interest payment = interest rate × Loan balance at the beginning of the year

DATA

Interest rate = 8%

Loan balance at the beginning of the year = $250,000

Interest expense = 8%× 250,000 = $20000

Principal paid = Annual installment - Interest = 37,258-20,000 = 17,258 <em>(this  is not required but to explain the concept)</em>

Interest expense = $20,000

3 0
3 years ago
Price controls can cause _____.
aliina [53]
Anger from citizens??? 
8 0
3 years ago
Read 2 more answers
Karen, an accrual basis taxpayer, sold goods in December 2019 for $20,000. The customer was unable to pay cash. So the customer
Step2247 [10]

Answer:

Karen must recognize income of $20,000 in 2019 and $500 in 2020

Explanation:

Accrual basis of accounting states that income must be recognized in the period when it is earned and expenses must also be recognized when it is incurred.

Therefore, since the goods was sold in December 2019 and $500 interest was paid with the principal in April 2020, Karen must recognize income of $20,000 in 2019 and $500 in 2020.

3 0
3 years ago
You work for a company that has a form where people can request a free consultation. You want to create a list of people in your
klio [65]

Answer:

(A) Saved filters

Explanation:

Saved filters allow you to quickly view a segment of your database right from the contacts, companies, deals, or tickets dashboard. You can use any default or custom property in your HubSpot account to segment your contacts using saved filters. Contacts will be added or removed from saved filters automatically based on whether or not they currently meet the criteria you've set.

3 0
3 years ago
Other questions:
  • The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deeme
    6·1 answer
  • Bachmann Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the f
    7·1 answer
  • Calculate the simple interest you would receive in five years on a savings account that earns 7.5% annual interest. your beginni
    14·2 answers
  • Jones Company has the following liabilities at the end of the current year:
    6·1 answer
  • Assume a company sold a piece of equipment for $3,000. The original cost was $15,000 and the accumulated depreciation prior to t
    15·1 answer
  • Which of the following circumstances is (are) not an acceptance of the goods by the buyer
    12·1 answer
  • A seller or manufacturer has significant legal responsibility to buyers and users of goods and services, as well as to third par
    12·1 answer
  • Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products usin
    15·1 answer
  • When buyers in a competitive market take the selling price as given, they are said to be a. monopolists. b. free riders. c. pric
    9·1 answer
  • a company that reports a significant negative cash flow from investing activities due to the purchase of a building will most li
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!