1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Leona [35]
3 years ago
11

Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor an

ticipates a fair return for the risk of the security he invests in, he can expect to _____.
Business
1 answer:
natali 33 [55]3 years ago
7 0

Answer:

The correct answer is letter "B": pay less for the security that has higher risk.

Explanation:

While investing, risk is a measure of how an asset can fluctuate providing profits or incurring losses. Risk investment tends to be associated with volatility which is how sensitive the asset is to respond to events that can make the asset price skyrocket or drop sharply.

<em>In case an investor believes his strategy will provide a fair return, he must be considering the net profit (gross profit minus initial investment) will be high enough. Besides the initial investment should have been purchased at the lowest price possible and the asset bought must represent the security with the highest risk at the moment of the purchase.</em>

You might be interested in
You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w
Oksanka [162]

Answer:

Present Value= $1,772.115

Explanation:

Giving the following information:

You have won the $3 million first prize in the Centennial Lottery.

However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.

We need to use the following formula:

PV= FV/[(1+i)^n]

PV= present value

FV= final value

PV= 3000000/(1.10^78)= $1,772.115

7 0
3 years ago
the change from traditional manufacturing to service and high-tech manufacturing requires highly job skills.
valentina_108 [34]

Answer:

Technical

Explanation:

8 0
2 years ago
During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balan
lidiya [134]

Answer:

$45,000

Explanation:

Given the above information, the account balance on February 1 is computed below;

Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account

= $59,900 + $186,500 - $201,400

= $45,000

Therefore, the account balance on February 1 is $45,000

5 0
2 years ago
Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the:?
exis [7]

Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the 1980s and in 2007-2009.

  • Private property in the form of land and buildings is referred to as real estate. Real estate comprises all resources on the land, such as water and minerals, and can be used for residential, commercial, or industrial purposes.
  • Homes, workplaces, retail establishments, healthcare facilities, farms, and other structures are all instances of real estate. Real estate includes both the undeveloped area outside of our city and the road that takes us there. Due to the fact that the asset is tangible by nature, many individuals like working with and investing in it.

To know more about Real estate visit:
https://brainly.in/question/58615
#SPJ4


7 0
1 year ago
Everything else held​ constant, an increase in currency holdings will cause A. the money supply to rise. B. checkable deposits t
liraira [26]

Answer:

C. the money supply to fall.

Explanation:

According to my research on economics, I can say that based on the information provided within the question an increase in currency holdings will cause the money supply to fall. This is because if people begin to hold this causes the cash flow to decrease and money supply decreases because of the low cash flow.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Other questions:
  • Don (67) and Carol (66) are married and file a joint return. Their gross income (including 1/2 of their social security) for 201
    6·1 answer
  • People are often influenced by reference groups to which they do not belong. ________ refer to groups to which an individual wis
    12·1 answer
  • Equipment with an estimated market value of $27,869 is offered for sale at $45,447. The equipment is acquired for $16,939 in cas
    9·1 answer
  • QUESTION 4 / 10
    9·1 answer
  • BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the taxyear. BCD reported a loss for the year,
    15·1 answer
  • Yuki was just hired as a financial analyst and will spend the next two weeks learning company policies, procedures, and culture
    8·1 answer
  • The McDonald's fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties ar
    12·1 answer
  • Whether to pay a lawmaker for giving a speech at your company is an ethical
    15·1 answer
  • Skysong, Inc. reported net income of $194,500 for 2020. Skysong also reported depreciation expense of $47,500 and a loss of $6,2
    15·1 answer
  • prepare the journal entry to record double declining balance depreciation expense for the forklify for year 2
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!