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4 years ago

When it comes to investing, what is the typical relationship between risk and return?

Business

2 answers:

Crank4 years ago

8 0

The correct answer is;

B .The greater the potential risk, the greater the potential return.

In order to run a business and convert an administrator, a person must have the ability to take and bear the risk. Risk presence is a key to any business.

When it approaches to investing, one general relationship between risk and reward is that taking more risk is correlated with a greater return. However, in many cases, there is no connection between the two. For example, even though stocks tend to have a higher return than relationships, taking that risk does not establish a genuine return.

The risk is the feasible amount of damage the business might have to face. While the return is the value of interest the business may receive.

bonufazy [111]4 years ago

5 0

D i would think im not shure thoe

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g Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit,

Paladinen [302]

Answer:

Total incremental cost of Making = $370,800 and Buying = $378,400.

Decision : The company should continue to manufacture the part instead of buying the part from the outside supplier

Explanation:

Analysis of the Buy or Decision

Buy Make Difference

Costs :

Purchase Price ( $4.30 × 88,000 units) $378,400 $ 0 ($378,400)

Savings :

Variable Costs ($3.10 × 88,000 units ) $0 $272,800 $272,800

Fixed Cost $0 $98,000 $98,000

Total $378,400 $370,800 ($7,600)

Note that, Allocated fixed costs are unavoidable whether the company makes or buys the part thus not relevant for this decision.

Conclusion :

It can be seen that it is quite expensive to buy the part from the outside supplier, so continue making the part internally

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4 years ago

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sveticcg [70]

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3 years ago

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