When you are deciding what to buy, you should not...

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

Ilya [14]

Answer:

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

Explanation:

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

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

Note- All the governments are prone to risk practically 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 risk, it's just the financial backing of the government financial instruments which makes them less risky as compared to the other financial instruments.

7 0

3 years ago

A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $

Bezzdna [24]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Unitary variable cost= $10

Total fixed costs= $15,000

Selling price= $12

The break-even point analysis shows the number of units required to cover for the fixed costs.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 15,000/ (12 - 10)= 7,500 units

5 0

4 years ago

Read 2 more answers

You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is plann

balandron [24]

44.2

Because I said so

3 0

3 years ago

The price of Johnny ' s favorite burger, the Big Mac from McDonald' s goes up in price. He goes to Burger King and purchases a W

denpristay [2]

Answer:

compramise

Explanation:

He settled for a Whooper instead of the Big Mac.

7 0

4 years ago

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Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations

vazorg [7]

Answer:

operating activities

services collected 8,500

account collected 3,900

wages for the perid (2.500)

purchase in cash

supplies (3,300)

advertisement (910)

payment to suppliers (900)

Cash generated from operating activites: 4,790‬

investing activities

purchase of suite (45,000)

office equiment purchase (5,000)

cash used for investing activites 50,000

financing activities

Lopez cash contributiion 61,000

Lopez withdrawals (1,400)

cash generated from financing activites 59,600

cash generated for the period 14,390

beginning of the period 0

Ending Cash 14,390

Explanation:

We have to associate each transaction with a cash flow activity.

The first step is checkthe cash involve, we will ignore anythign that is not cash.

then

(A) the contribution finance the business so financing

(B) this suite will be used for several period. It will be the base of operation from the business, is an investment

(c) the equipment will be used for several periods, it is an investment like the suite

(d) we record only for the cash used

(e) paid for an operational cost

(f) no cahs involve

(g) collected from business activities

(h) withdraw from the owner, a (des)financing

(i) receive cash from their activities, operating

(j) payment for equipment, this cash is invest in the equipment

(K) paid for wages, that is an operational cost, without secreaty the firm won't operate

3 0

3 years ago