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3 years ago

Which type of portfolio might a young investor who is not afraid of risk choose?

2 answers:

7 0

The type of portfolio that the young investor who is not afraid of risk choose is the portfolio with a high percentage of stocks. Stocks are able to return higher compared to others and this makes it give a high risk because of its performance of providing losses or either profit. The answer is letter D.

Lynna [10]3 years ago

4 0

Answer:

D A portfolio with a high percentage of stocks

Explanation:

The portfolio that a young investor who is not afraid of risk would choose is a portfolio with a high percentage of stocks considering that they have a high potential for earning if they are manage appropiately but stock prices change all the time and posses greater risk than other options like treasury bonds that are government debt and conservative mutual funds that include different things like stocks and bonds and as it is diversified has less risk.

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Mike Finley wishes to become a millionaire. His money market fund has a balance of $403,884 and has a guaranteed interest rate o

kipiarov [429]

Answer:

Mike Finley

t = 7.999983133 years rounded off to 8 years

Sally Williams

r = 0.110000123 or 11.0000123% rounded off to 11.00%

Explanation:

Mike Finley

To calculate the time period it will take Mike Finley to become a millionaire, we will use the formula of future value of cash flow. The formula for future value of cash flow is as follows,

Future value = Present value * (1+r)^t

Where,

r is the interest rate or rate of return
t is the time period in years

Plugging in the values for Future value, present value and r in the formula, we can calculate the t to be,

1000000 = 403884 * (1+0.12)^t

1000000 / 403884 = 1.12^t

2.475958444 = 1.12^t

Taking log on both sides.

ln(2.475958444) / ln(1.12) = t

t = 7.999983133 years rounded off to 8 years

Sally Williams

We will use the same formula for future value of cash flows as we used above to calculate the rate at which investment should be compounded annually to grow to $1 million.

1000000 = 209004 * (1+r)^15

1000000 / 209004 = (1+r)^15

4.784597424 = (1+r)^15

Taking root of 1 on both sides.

(4.784597424)^1/15 = (1+r)^15 * 1/15

1.110000123 = 1+r

1.110000123 - 1 = r

r = 0.110000123 or 11.0000123% rounded off to 11.00%

7 0

3 years ago

List the economic activities to selling cotton shirts at a store

ANEK [815]

Answer:

The basic questions to answer are the 4 economic problems.

Explanation:

What to produce?

The question of what to produce has already been answered by determining to produce cotton shirts.

How to produce?

This deals with the procedure and materials needed for production. In answering the question of how to produce, one must a certainnn the needed materials needed, suitable labour and appropriate processes.

For whom to produce?

Not the individual or firm must ascertain the category of people he wants to produce for, it it the rich or the poor, elite or artisans, students or working class, adults or babies.

4 0

3 years ago

An open-end mutual fund has the following stocks:

Romashka-Z-Leto [24]

Answer:

Net asset value is $4,104,500 in total and $63.15 per share

Explanation:

Stock Shares Price Total value (Share x Price)

A 13,500 $83 $1,120,500

B 33,000 $16 $528,000

C 20,000 $59 $1,180,000

D 71,000 $21 $1,491,000

Total $4,319,500

Net Asset = $4,319,500 - $215,000 = $4,104,500

NAV = $4,104,500 / 65,000 = $63.15 / share

4 0

4 years ago

The goal of financial management is to increase the:A. future value of the firm's total equity.B. book value of equity.C. divide

FromTheMoon [43]

Answer: Option (D)

Explanation:

Financial management tends to first procure the funds and then further utilize it. Main objective of financial management can be considered to maximize the value of the organization to the owners. Value of the state owned entity is thus evaluated and scaled using the share price of their stock. The primary goal involves to maximize the value per share of the stock.

8 0

3 years ago

Last year if 97 percent of the revenues of a company came from domestic sources and the remaining revenues, totaling $450,000, c

serg [7]

If 97% came from domestic sources then 3% came from foreign sources. This means that $450,000 is 3/100 of the total amount. You need to divide 450,000 by 3 to get 1/100 (1%) of the total amount, then multiply that number by 100 to give you the sum of 100/100 (100%) of the company's revenues:
450,000/3=150,000×100= $15,000,000
So, the company made $15,000,000 last year

7 0

3 years ago