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Pavel [41]
4 years ago
12

How does the risk/return ratio of a government bond compare with that of other types of investments? A) Government bonds have hi

gher risk and higher returns. B) Government bonds provide higher returns and lower risk. C) Government bonds typically provide lower returns, at lower risk. D) Government bonds have about the same risk/return ratio as other investments.
Business
2 answers:
Lunna [17]4 years ago
7 0
I think the most appropriate answer would be C.


I hope it helped you!
bazaltina [42]4 years ago
7 0

Answer:

C) Government bonds typically provide lower returns, at lower risk.

Explanation:

There is an inverse relationship between risk and yield in financial market stocks. Typically, higher risk stocks offer higher returns, otherwise there would be no incentive for the investor. Conversely, when stocks offer little risk, compensation tends to be lower. The decision, therefore, will depend on the investor's risk appetite.

What determines the risk, in the case of companies, are the market parameters and strategic decisions of the company. In the case of the government, the chance of default is very low. This is because for a person to lose money on stocks, the company must default. Companies only default when they fail. The Government is a very powerful economic agent and has the prerogative to finance its own debt. In this context, only in a catastrophic scenario can a government default happen. On the other hand, due to the greater security of this type of investment, the remuneration is usually low.

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Answer:

Gain $72,480

Explanation:

Calculation for the amount of gain or loss that Sheffield should recognize on the exchange

Using this formula

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If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 bi
umka21 [38]

Answer:

c. $400 billion

Explanation:

Calculation to determine what an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right

First step is to calculate the GDP Multiplier

Using this formula

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Let plug in the formula

GDP Multiplier=1/1-0.75

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5 0
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lawyer [7]

Answer:

(d) Identifying distractions.

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A band sells its music on a website for $0.99 per downloaded song. The revenue function is R(x) = .99x. What is the daily revenu
Varvara68 [4.7K]

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Explanation:

Here, given:

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