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makkiz [27]
4 years ago
7

Which of the following statements is​ FALSE?

Business
1 answer:
nordsb [41]4 years ago
6 0

Answer:

The correct answer is letter "B": To compensate for the risk that they will receive less than promised if the firm​ defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.

Explanation:

U.S. Treasuries are marketable securities issued by the U.S. government and available in increments of $100 per year. The U.S. treasuries have a maturity range of 10 to 30 years with the most common being 30 years. Interest is paid every six (6) months and is tax-free at the state level, but federally taxable.

<em>Investors ask for a higher interest rate compared to the rate on U.S. treasuries to balance the risk of their investment in case firms face economical issues.</em>

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A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities
antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more  logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.

Thus, beta provides better details about explaining the returns.

5 0
3 years ago
You buy 50 stocks of Company A, 30 of Company B, and 20 of Company C. The annual returns of these companies are 8%, 12%, and 10%
bearhunter [10]

Answer:

Average return for one year is 9.6 %

Explanation:

Computation of average return

Lets assume the cost of each share to be 100

                                                       Opening    Growth             Closing

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  <u>2,000</u>             10 %                <u>2,200</u>

Total values                                     10,000                                     10,960

Increase in value over base divided by base equals the average return

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

3 0
4 years ago
Organizations commit resources to cross-functional team development to: Group of answer choices give internal users ownership of
astra-53 [7]

Answer: The correct answer is "achieve time, quality, or cost-reduction".

Explanation: Generally, the objective sought by organizations when committing resources for the development of multifunctional equipment is to meet the objectives of time, quality or cost reduction in a variety of tasks.

6 0
4 years ago
Brady corp. is considering the purchase of a piece of equipment that costs $20,000. projected net annual cash flows over the pro
katovenus [111]

Answer:

B

Explanation:

Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.

It is expressed in years and fraction of years.

Initial investment    20,000

Year 1                                                 3000               17000

Year 2                                                 8000               9000

Year 3                                                 15,000

9000/15000= 0.6 years

The payback period = 2.6 years

5 0
4 years ago
roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. is this okay? unset starred question no
Shalnov [3]

Yes, licensees may utilize templates that were designed or approved by lawyers. If Roberto, a licensee, filled out the boxes on a typical form used by his brokerage company.

In order to complete a transaction for stock shares, bonds, options, and other financial instruments, a brokerage firm or brokerage company acts as a middleman between buyers and sellers.

Following the completion of the transaction, commissions or fees are levied as payment to the broker.

The majority of discount brokerages now provide zero-commission stock trading to its clients. The businesses compensate for this revenue loss from other sources, such as compensation from the exchanges for large orders and trading commissions for other goods like mutual funds and bonds.

  • A brokerage firm typically serves as a middleman, bringing together buyers and sellers to streamline a transaction.
  • A set annual charge or fees per transaction are used to pay full-service brokerage firms.

Learn more about brokerage firms here

brainly.com/question/14555640

#SPJ4

3 0
2 years ago
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