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3 years ago

Which is an example of a high-risk investment?

Business

2 answers:

vladimir1956 [14]3 years ago

6 0

The answer is A stock in a start-up company

Yuki888 [10]3 years ago

3 0

The option A is correct.

Stock in a start-up company is an example of high-risk investment.

Further Explanation:

High-risk investment is a type of investment that has a high risk and high return. The investment may grow beyond the expectation, the investor will earn a huge profit. The high-risk investment may fall beyond the expectation, the investor will incur a huge loss.

Justification for the correct and incorrect answer:

Stock in a startup company: This option is correct.

The startup company does not have a fixed share price. If the company may grow, the share price goes up. If the company may not grow, the share price goes down. This is a type of high-risk investment.

Bond: This option is incorrect.

The bond pays a fixed interest on the investment. As there is no risk, this is not a high-risk investment. Bond is a risk less investment.

CDs from an insured bank: This option is incorrect.

The full of from of CDs is a certificate deposit. As this investment is insured by the bank, there is no risk. This is the incorrect option.

401k plan: This option is incorrect.

401k plan is a type of retirement account that has been opened by the employers. This does not have any type of risk associated with it.

Learn more:

1. Learn more about retirement

brainly.com/question/1430460

2. Learn more about life insurance

brainly.com/question/2674013

3. Learn more about negotiating the plan

brainly.com/question/10089477

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Investment

Keywords:

high-risk investment, 401k plan, stock, company, startup, high risk, expectation, may grow, bond, CDs from an insured bank, type of investment.

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3 years ago

Wexell Framing's cost formula for its supplies cost is $1,230 per month plus $10 per frame. For the month of October, the compan

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Answer:

The correct answer is $50 (unfavorable).

Explanation:

According to the scenario, computation of the given data are as follow:-

Planning supply activity cost = (592 × $10) +$1230

= $7,150

Actual supply activity cost = (597 × $10) + $1230

= $7,200

We can calculate the activity variance for supply cost by using following formula:-

Activity variance for supplies cost = Actual activity cost – Planning activity cost

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= $50 ( positive shows unfavorable)

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3 years ago

Executives at southwestern construction have noticed that the company's construction team in the phoenix office is more efficien

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Answer:

Leveraging the experience of one group to help another group.

Explanation:

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3 years ago

Minion, Inc., has no debt outstanding and a total market value of $344,400. Earnings before interest and taxes, EBIT, are projec

loris [4]

Answer:

A. $5.97

$6.99

$4.42

B. 17%

26%

Explanation:

A. If Economy conditions are normal

$49,000 / 8,200 shares = $5.97 each

If Economy expands

$49,000 * 117 / 100 = $57,330

$57,330 / 8,200 shares = $6.99 each

If Economy is in recession

$49,000 * 74 / 100 = $36,260

$36,260 / 8,200 = $4.42 each

If Economy expands

$6.99 - $5.97 = $1.02

$1.02 / $5.97 * 100 = 17%

If Economy is in recession

$4.42 - $5.97 = -$1.55

-$1.55 / $5.97 = -26%

6 0

2 years ago

The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 1,950 units at $22 each on January

kramer

Answer:

$21,770

Explanation:

The computation of cost of goods sold is shown below:-

= (1,950 × $22) + (2,200 × $21) + (1,050 × $23)

= $42,900 + $46,200 + $24,150

= $113,250

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= $5,200

Weighted average cost per unit = Cost of units available for sale ÷ Number of units available for sale

= $113,250 ÷ $5,200

= $21.77

Cost of goods sold = Sold units × Weighted average cost per unit

= 1,000 × $21.77

= $21,770

3 0

3 years ago