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Mademuasel [1]
3 years ago
11

Which of the following is TRUE of​ risk? A. Risk and return are inversely proportionate to each other. B. Riskier investments te

nd to have lower returns as compared to Tdashbills which are risk free. C. Higher the risk associated with a security the lower is its return. D. Risk is a measure of the uncertainty surrounding the return that an investment will earn.
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

The answer is: D) Risk is a measure of the uncertainty surrounding the return that an investment will earn.

Explanation:

Investment risk refers to the probability of losing an investment.  It measures the uncertainty level of earning returns from an investment.

When an investor anticipates a higher risk, he will expect higher returns. On the contrary, low risk investments (e.g. T-Bills) offer very low yields.

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Suppose that when the price of gasoline is $3 per gallon, the total amount of gasoline purchased in the United States is 8 milli
miss Akunina [59]

Answer:

Option (C) is correct.

Explanation:

Elasticity of demand refers to the responsiveness of change in quantity demanded with any change in the price level.

Elasticity of demand:

= (change in quantity ÷ old quantity) ÷ (change in price ÷ old price)

=[(12 - 8) ÷ 8] ÷ [($3 - $2.25) ÷ $3]

= 0.5 ÷ 0.25

= 2

Therefore, the price elasticity of demand is 2.

4 0
3 years ago
Par value is the dollar value that an investor must pay in order to purchase preferred stock.
Vesnalui [34]
I would say false. the par value is not necessarily the amount that the investor must pay in order to purchase the preferred stock. the par value is known to be the market price of the stock however, investors may offer the stock above or below the par value depending on the decision of the board
4 0
3 years ago
Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $20,000 of tax).
Brut [27]

a. If Song earns only $75,000 in taxable income, the government's tax revenues will be $18,750 ($75,000 x 25%) and <u>a. Government's tax revenues would decrease by $1,250.</u>

b. The term that describes this type of reaction to a tax rate increase is <u>d. Income effect.</u>

c. The taxpayers that will likely respond in this manner are <u>b. Taxpayers with more disposable income.</u>

<h3>Data and Calculations:</h3>

Song's taxable income per year = $100,000

Average tax rate = 20%

Tax liability per year = $20,000 ($100,000 x 20%)

<h3>New Tax Regime:</h3>

Tax rate = 25%

New taxable income of Song = $75,000

Tax liability = $18,750 ($75,000 x 25%)

Thus, if the tax rate is increased from 20% to 25% forcing Song to reduce his taxable income to $75,000,  <u>a. Government's tax revenues would decrease by $1,250.</u>

<u />

Learn more about taxable income at brainly.com/question/10137785

5 0
2 years ago
References that employers trust for the most accurate reporting include _____. a. friends b. relatives c. counselors d. parents
boyakko [2]

Counselors are one of the references that employers trust for the most accurate reports. As a result, option (c) is the proper response.

<h3>Which are considered the most-trusted references by the employer?</h3>

Counselors are one of the references that employers trust for the most accurate reports.

Employers do not trust the friends, relatives, and parents of prospective employees or employees to provide an accurate report because they believe they are not professional enough and that because of their proximity to the employee, they may provide false information in order to benefit the employee.

Employers view counselors as more professional and more likely to provide accurate information.

For more information about employer references, refer below

brainly.com/question/18504651

7 0
1 year ago
The Martinez Legal Firm (MLF) recently acquired a smaller competitor, Miller and Associates, which specializes in issues not pre
Vsevolod [243]

Answer:

increase

Explanation:

Transaction cost is the cost needed for every exchange. This cost can be external or internal. External transaction cost comes from the cost to do an exchange with a second party while internal cost comes from the company itself.  

The Martinez Legal Firm acquired a competitor so their business size will increase for sure. Larger businesses will become more complex and need more management. These will, in turn, increase the internal transaction cost.

6 0
3 years ago
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