Answer:
The correct answer is: C. larger decrease in total risk.
Explanation:
The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.
Answer:
An investment with more liquidity would be ideal for someone who knows they will nee cash in the near future.
Explanation:
More liquid assets are those that can be turn into cash more quickly than those that less liquid assets.
If one is thinking about investing in a liquid asset, surely is because it will need the cash in the short run. On the contrary, we could invest in other financial instruments less liquid (typically those who offer higher yields and have longer terms), because we are not going to need the money for the moment, and we want to take advantage of that to get a higher yields.
Answer:
If Verizon charges an optimal two-part price thenconsumer surplus will be zero.
Explanation:
Given a competitive market the consumer surplus will be the area of the demand curve above the market price
This is, between the intersection point with Y axis and a parallel at market price. Ofter represent as a triangle
If a monopolistic company maximize profit It will decrease this consumer surplus as much as it can to gain it from itself.
First it will set price equal to his marginal revenue.
Then, if possible it will charge two tariff a fixed component and a variable component per usage This will extrac all consumer surplus in favor of the firm leaving a consumer surplus of zero.
If Verizon charges an optimal two-part price thenconsumer surplus will be zero.
Answer:
$221,100
Explanation:
Given that,
Book value of equipment = $65,300
Sold at a loss = $14,000
Purchase of a new truck = $89,000
Sale of land = $198,000
Sale of Long term investment = $60,800
Cash flows from investing activities:
= Sale of Equipment - Purchase of a new truck + Sale of land + Sale of Long term investment
= ($65,300 - $14,000) - $89,000 + $198,000 + $60,800
= $51,300 - $89,000 + $198,000 + $60,800
= $221,100
Answer:
profit margin = 23.33%
Explanation:
profit margin = net profit / net sales
- net profit = $2,800
- net sales = $12,000
profit margin = $2,800 / $12,000 = 0.233333 = 23.33%
The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.
