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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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The economic growth demonstrated by this recruitment letter was primarily a result of —.

Lorico [155]

The economic growth in the recruitment letter was demonstrated as a result of industrial production.

<h3>What is economic growth?</h3>

A stable uplift in the economic conditions, in comparison to the previous economic period(s), is regarded as an economic growth. It is driven by many external factors.

In the recruitment letter, it was found that the increase in the industrial productivity led to extreme economic growth in the United States of America.

Hence, the reasons for the economic growth have been aforementioned.

Learn more about economic growth here:

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4 0

2 years ago

Huai takes out a $3,600 student loan at 6.6% to help him with 2 years of community college. After finishing the 2 years, he tran

Alja [10]

Answer:

a. The monthly payment on loan 1 is $76.03.

b. The monthly payment on loan 2 is $411.69.

Explanation:

a. Calculate the monthly payment on loan 1.

To determine the amount of periodic payments, the present value of annuity formula should be used:

$PV=P(\frac{1-(1+r)^{-n} }{r} )$

Where:

PV= present value

p=periodic payment

i=rate of interest

n=number of periods

We get the data for this exercise:

PV= 3,600 (loan).

p= unknown (we must find this value)

i= 6.6% or 0.066. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.066 / 12).

n= 4 years and 7 months, that is 55 months.

And we replace in the formula:

$3600=P(\frac{1-(1+\frac{0.066}{12})^{-55} }{\frac{0.066}{12} } )$

$3600=P(\frac{1-(1+0.055)^{-55} }{0.0055} )$

$3600=P(\frac{1-(0.7395812268)}{0.0055} )$

$3600=P(\frac{0.2604187732}{0.0055} )$

$3600=P(47.348867)$

Therefore:

$P=\frac{3600}{47.348867}$

$P=76.03$

The monthly payment on loan 1 is $76.03.

b. Calculate the monthly payment on loan 2.

We get the data for this exercise:

PV= 11,600 (loan 2).

p= unknown (we must find this value)

i= 7.3% or 0.073. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.073 / 12).

n= 2 years and 7 months, that is 31 months.

And we replace in the formula:

$11600=P(\frac{1-(1+\frac{0.073}{12})^{-31} }{\frac{0.073}{12} } )$

$11600=P(\frac{1-(1+0.006083)^{-31} }{0.006083} )$

$11600=P(\frac{1-(0.8286047296)}{0.006083} )$

$11600=P(\frac{0.1713952704}{0.006083} )$

$11600=P(28.1761088936)$

Therefore:

$P=\frac{11600}{28.1761088936}$

$P=411.69$

The monthly payment on loan 2 is $411.69.

8 0

3 years ago

Which of these household purchases will be counted as part of consumption in a country’s gross domestic product?(pick more then

alex41 [277]

I think it's a "newly constructed home"

I hope it helped you!

6 0

3 years ago

Read 2 more answers

A job cost sheet of Sandoval Company is given below.

OLEGan [10]

Answer:

A. Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

B. 125%

C. Total cost $7,760

Unit cost $3.104

Explanation:

1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :

Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

2. Calculation to determine the predetermined manufacturing overhead rate

Predetermined overhead rate=$550/$440*100

Predetermined overhead rate=125%

Therefore the predetermined manufacturing overhead rate is 125%

3. Calculation to determine the total cost and the unit cost of the completed job

TOTAL COST

Direct Material $4, 700

($700 + $900 + $1,600 + $1,500)

Add Direct Labor $1,360

($440 + $380 + $540)

Add Manufacturing Overhead $1,700

($550 + $475 + $675)

Total Cost $7,760

UNIT COST

Unit cost= $7,760/ 2,500

Unit cost=$3.104

Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104

8 0

2 years ago

Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as

IrinaVladis [17]

Answer:

c. $500,000

Explanation:

Given that :

Parker Corp. owns 80% of Smith Inc.'s common stock

During Year 1, Parker sold Smith $250,000 of inventory

Therefore; adjusted for inter Corp. sales = $250,000

The following information pertains to Smith and Parker's sales for Year 1:

Parker Smith

Sales $ 1,000,000 $ 700,000

Cost of Sales $400,000 $ 350,000

Total $ 600,000 $ 350,000

For the Unadjusted Cost of Sales of Parker and Smith = $400,000+$ 350,000

= $750,000

The amount that Parker should report as cost of sales in its Year 1 consolidated income statement = Unadjusted Cost of Sales - adjusted for inter Corp. sales

= $750,000 - $250,000

= $500,000

7 0

3 years ago