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3 years ago

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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Answer:

The answer is D. $180,000

Explanation:

Investing activities is about spending on long term asset or long term investments.

Under investing activities in cash flow, what constitutes inflow is the sales of these long term assets like plant and machinery and what constitutes outflow is the purchase of these assets.

In this question, the inflow is the sale of equipment which us $270,000 and outflow is the purchase of equipment for $90,000.

So net cash flow from investing activities is:

$270,000 - $90,000

=$180,000

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3 years ago

Larkspur, Inc. had net sales in 2020 of $1,447,100. At December 31, 2020, before adjusting entries, the balances in selected acc

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Answer:

The entry to record bad debt expense:

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The adjustment to record Bad debt expense and Allowance for Doubtful Accounts:

Debit Bad debts expense $24,446

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3 years ago

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1 year ago

In 1-2 sentences, explain why scarcity exists.

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Scarcity refers to a state of being in short supply.

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3 years ago

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3 years ago

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