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3 years ago

Buying several different investment alternatives to spread the risk helps an investor

1 answer:

3 0

Buying several different investment alternatives to spread the risk helps an investor achieve diversification. The correct option among all the options that are given in the question is the last option or option "D". By diversifying the investment, a person can earn less, but will never loose all his investments in one shot.

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One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck.

garik1379 [7]

Answer: Yield management pricing

Explanation It can be defined as the strategy in which the company studies and influence consumer behavior with the intent of maximizing profit with the limited amount of resources available.

In the given case, the truckers have limited time and they are getting extra revenue from the website. This will result in maximization of their profit.

Thus, from the above we can conclude that the right answer is option E.

5 0

4 years ago

An economic expansion tends to cause the federal budget deficit to ________ because tax revenues ________ and government spendin

Gwar [14]

An economic expansion tends to cause the federal budget deficit to decrease because tax revenues rise and government spending on transfer payments falls.

What is economic expansion?

Economic expansion occurs when real GDP raises from a trough to a peak within two or more subsequent quarters. The expansion occurs during times of economic stimulation when there is a rise in employment, followed by consumer confidence and discretionary spending. The stage is additionally referred to as economic recovery. When expansion reaches its pinnacle, a peak happens. With a large sum of demand for goods, inflation occurs when costs begin to increase. Gradually, consumers begin to buy less. After reaching the peak, economic growth starts to decrease. While the phrases inflation and deflation refer to rising and falling prices of commodities, goods, and services relative to the value of money, economic contraction and expansion refer to the overall output of all goods and services.

To learn more about economic expansion, visit;

brainly.com/question/831569

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6 0

2 years ago

Your client has been offered a 5-year, $1,000 par value bond with a 10 percent coupon. Interest on this bond is paid quarterly.

Serjik [45]

Answer:

$906.18

Explanation:

Step 1: Calculation of the present value of the coupon (PVC) cash flow

The formula for calculating the PV of an ordinary annuity is used as follows:

PVC = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)

Where;

PVC = Present value of the coupon (PVC) payment =?

P = Quarterly coupon amount = $1,000 × (10%/4) = $25

r = interest rate = 12% annual = 12% ÷ 4 quarterly = 3% or 0.03 quarterly

n = number of period = 5 years = 7 × 4 quarters = 28 quarters

Substitute the values into equation (1) to have:

PVC = 25 × [{1 - [1 ÷ (1+0.03)]^28} ÷ 0.03] = $469.10

Step 2: Calculation of the present value of the face value (PVFAV) of the bond

The simple PV formula is used as follows:

PVFAV = FAV ÷ (1 + r)^n ……………………………………. (2)

Where;

PVFAC = Present value of the face value of the bond = ?

FAC = Face value of the bond = $1,000

r and n are as already given in step 1 above

Substituting these values into equation (2), we have:

PVFAV = FAV ÷ (1 + 0.03)^28 = $437.08

Step 3: Calculation of the market price of the bond

Market price of the bond = PVC + PVFAC …………………………… (3)

From step 1, PVC is $469.10, and PVFAC is $437.08 from Step 2. We can them substitute for them in equation (3) and have:

Market price of the bond = $469.10 + $437.08 = $906.18

Conclusion

Therefore, she should pay $906.18 for the bond.

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4 years ago

Hiiiiiiiiiiiiiiiiiii !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!hey

marusya05 [52]

<h3>Hi there... </h3>

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4 0

3 years ago

Read 2 more answers

Some engineers design electronic products, such as dvd remote controls, with so many buttons that these devices are ultimately u

Nat2105 [25]

That statement is true

The curse of knowledge is a bias that formed because we have deeper knowledge about a specific knowledge compared to other people.
another example would be: the majority of wealthy Bankers have their own Physical deposits to store some part of their wealth because they understand the Risk that could be caused by failing Banks.

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4 years ago