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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.  

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Answer 2) Option C) Remain Unchanged.

Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.

In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.

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One sign of transition to a mixed-market economy is the establishment of..
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A) a fair labor market

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In a limited partnership, limited partners do not have the same rights as general partners to participate in management. Group o
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In a limited partnership, limited partners do not have the same rights as general partners to participate in management. This statement is true.

<h3>What is a limited partnership?</h3>

A limited partnership is a type of partnership that is made up of general partners and limited partners. The liability of limited partners is limited to the amount invested in the business while the general partners have unlimited liabilities.

The limited partner cannot partake in the daily running of the business unlike the general partner.

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You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales po
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The price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

Using this formula

Midsized automobile price = Marginal Cost (3×Elasticity) / 1 + (3 × Elasticity)

Let plug in the formula

Midsized automobile price  = $11,000 (3× -1.2) / 1 + (3× -1.2)

Midsized automobile price  = $14,000 × -4.8/ -3.8

Midsized automobile price = $14,000 × 1.384615

Midsized automobile price  = $15,230.765

Midsized automobile price =$15,230.77 (Approximately)

Inconclusion the price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

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2 years ago
Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
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Answer:

A- $ 50  Electricity

     $ 75   Office suplies

     $ 125 Total explicit costs

B-  $ 300   Rent

$10000 Lost of salary for quitting his job

      $ 10300  Total implicit cost

C-  $ 125    Total explicit costs

     $ 10300   Total implicit cost

     $ 10425   Total economic cost

Explanation:

A- Explicit costs are observable (such as salaries paid to  employees, material costs, taxes, etc.) and are paid with cash.

B- Implicit costs are those incurred for giving up an alternative use of a specific resource, but no cash outlay is made. In this case, $ 300 that is no longer earned by using the garage as an office and $10000 lost each month for quitting his job.

C- The sum of the implicit and explicit costs determines the total economic cost

.

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3 years ago
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