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tiny-mole [99]
4 years ago
5

Why is a high-quality bond typically considered a lower-risk investment than a stock? AWell-established company stocks pay divid

ends to their investors. BBonds are issued by many different entities . CA bond typically pays a fixed, predictable amount of interest each year. DStocks are stable and do not change often.
Business
1 answer:
scoundrel [369]4 years ago
3 0
The short answer is that they are trusted more.
I would pick D.
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Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec
Ugo [173]

Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

Depreciation= $1375

Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price:  $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

Depreciation= $1375

7 0
4 years ago
The relationship between wealth accumulation and risk tolerance is referred to as what?
kati45 [8]

The relationship between wealth accumulation and risk tolerance is referred to as empirical results.

The methodical and disciplined process of acquiring assets in order to accomplish specific important objectives is known as wealth accumulation. Without a defined objective, wealth growth is similar to wealth hoarding in that it increases tension and anxiety.

The degree of risk an investor is willing to take is known as risk tolerance. Investors are typically questioned in order to determine their risk tolerance. Assessing their time horizon, assets, and need for income could be part of this.

Risk tolerance typically rises as money increases but declines as people get older. Personal experience and local trust both have a big impact. For high-income households, this influence on risk tolerance is especially pronounced. Risk tolerance is not much impacted by current social security.

To learn more about Risk Tolerance refer to:

brainly.com/question/20701963

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4 0
2 years ago
The agent of a broker-dealer registered in State A, sells unregistered non-exempt securities to customers in State A. These cust
Tom [10]

Answer:

The clients may initiate a civil lawsuit to recover their losses

Explanation:

It is assumed that the agent sold the securities with an intention to defraud. Under the Uniform Securities Act, the client may initiate a civil lawsuit so as to recover losses. Clients would sue based on the fact that the securities were unregistered and non-exempt while attempting to get back what they have lost in finance, attorney fees, and interest inclusive. These 3 damages are only applicable to insider trading.

3 0
3 years ago
You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
deff fn [24]

Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

3 0
3 years ago
item 2 if, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
Oksanka [162]

The market for money, the quantity of money demanded exceeds the money supply, the interest rate will It will rise, and households and businesses will have less money.

When demand exceeds supply, people sell assets such as bonds for money. This increases the supply of bonds, lowering bond prices and increasing market interest rates.

When money demand increases, the money demand curve shifts to the right and nominal interest rates rise. Conversely, when the demand for money decreases, the demand curve for money shifts to the left and interest rates fall.

To understand why interest rates are falling, remember that people who want to hold less money want to hold more bonds. Panel (b) therefore shows an increase in demand for bonds. High bond prices mean low interest rates. When interest rates fall, financial markets are rebalanced.

Learn more about demand exceeds brainly.com/question/29311439

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5 0
1 year ago
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