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Over [174]
3 years ago
15

How are volatility and risk related in an investment?

Business
2 answers:
Gnom [1K]3 years ago
8 0

Answer:

B my plato peoples

Explanation:

m_a_m_a [10]3 years ago
6 0
 I've never heard anyone say, ‘The prospective return isn't high enough to warrant bearing all that volatility.’ What they fear is the possibility of permanent loss.” Now volatility, to be sure, can cause permanent loss, because it can put investors in a situation where they choose, or are forced, to crystallize losses by selling after a drop. 
Unfortunately, volatility’s ease of measurement has put it at the center of risk management, leading to all sorts of problems when, as in 2008, we get unprecedented volatility and correlation, leading to permanent loss which was never predicted by the risk management systems and experts in charge. 
<span>2. A volatile investment is more risky. </span>
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You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
bulgar [2K]

Answer:

Simple payback is 4 years

Total discounted Payback is more than the 5 years which is the payback cutoff period.

Explanation:

Payback period is the time period in which the project recovers the initial cost incurred. Lower the payback period the more beneficial will be the project.

Simple payback = $100,000 / $25,000 = 4 years

Discounted Payback

Discounted payback is calculated by using the present value of future cash flows.

Total discounted cash flows = 22935.78 + 21042.0 + 19304.59 + 17710.63 + 16248.28 = 97,241.28

As sum of all cash flows are less than the initial investment so, total discounted Payback is more than the 5 years which is the payback cutoff period.

8 0
3 years ago
What’s going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only compet
IceJOKER [234]

Answer: The answer is oligopolistic competition

Explanation:

Price can be defined as the amount of money for which a goods or services is been offered for sale by the sellers of the goods. It is a sum of money at which the seller and the buyer agrees to exchange a goods or services. The price of a product or services usually shows the cost of the product and the quality of a product or services been offered for sale by the sellers. When a business set a price for their products or services they usually takes into consideration factors such as survival, profit maximization, return on their investment, market share, and the business prestige.

The strategy of setting the same price with your competitors is called oligopolistic competition. In this case, if one competitor wants to be ahead of other competitors in the market, then such a competitor has to include in their product features that will not be found in the product of their competitors, through this process such a competitor would be ahead of their competitors in the market by having the larger share of the market.

7 0
3 years ago
Production decision are part of what economic system<br> ?
Elena L [17]

Explanation:

Its part of the command economy

4 0
3 years ago
Read 2 more answers
What is Equity financing
MakcuM [25]
Equity Financing is when a business owner exchanges a qualified support in the company towards to an investor. Examples that I can name are Initial Public Offering, Small Business Investment Companies, Royalty Financing, and many more that I just listed. I hope it helps to your question and have a blessed day.
7 0
3 years ago
What are requirements for filing bankruptcy?
-Dominant- [34]

Answer: Chapter 12- <u>debt is due to farming expenses</u> and <u>stable income is available to pay off payment plan</u>

Chapter 15- <u>filing is based on UN legislation</u> and <u>corporation files international bankruptcy</u>

Explanation:

4 0
3 years ago
Read 2 more answers
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