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3 years ago

Which type of investment would be an example of an investment at point B? a US savings bond a CD a stock a savings account

Business

2 answers:

elena-14-01-66 [18.8K]3 years ago

4 1

Answer:

Stock

Explanation:

As you can see in the graph, investment B has a high risk, which means that the investor can lose a lot of money by adopting this type of experiment. However, the same investment has a high return, which means that the investor can likewise earn a lot of money if he decides to invest. Among the options given in the question above, the experiment that best fits this concept is stock.

In the stock market, the investor acquires pieces of companies that can lead to enormous financial stability, however these companies are doomed to the success of a region's economy, which is something highly changeable, for this reason, this type of investment presents a high risk .

RSB [31]3 years ago

3 0

Assuming both graphs increase from point A to both B, the asset class that has highest risk and typically highest return is "a stock".

US bonds have the lowest (and often benchmarked) rates of return and risk, stocks the highest, and CD's, bonds, and savings accounts in the middle.

Hope this helps

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Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil chan

vova2212 [387]

Answer:

Number of quarts for 960 oil changes= 6,144 quarts

No of hours for 960 oil changes = 432 hours

Number of quarts for 950 oil changes=6,080 quarts

No of hours for 950 oil changes= 427.5 hours

Explanation:

Guillermo's Oil and Lube Company

1.Number of quarts for 1 oil change = 6.4 quarts of oil

Number of quarts for 960 oil changes= 6.4 quarts of oil *960= 6,144 quarts

2. Number of minutes for 1 oil change = 27 minutes

Number of minutes for 960 oil changes = 27 minutes*960= 25920 minutes

No of hours for 960 oil changes = 25920/60= 432 hours

3.Number of quarts for 1 oil change = 6.4 quarts of oil

Number of quarts for 950 oil changes= 6.4 quarts of oil *950= 6,080 quarts

Number of minutes for 1 oil change = 27 minutes

Number of minutes for 950 oil changes = 27 minutes*950= 25650 minutes

No of hours for 950 oil changes= 25650/60= 427.5 hours

5 0

3 years ago

An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? W

Ganezh [65]

Answer:

B. No; The IRR is less than the required return by about 1.53 percent

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator:

Cash flow in year zero = -$42,000

Cash flow in year one = 15,300

Cash flow in year two = 28,400

Cash flow in year three = 7,500

IRR = 11.47%

A project should be chosen if the IRR is greater than the required return

The IRR is less than the required return so the project should be rejected.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0

3 years ago

What do you think would happen to the expected return on stocks if investors perceived an increase in the volatility of stocks?

olya-2409 [2.1K]

Answer:

Higher is the correct answer.

Explanation:

4 0

3 years ago

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond

cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable $2,000,000

To common stock $1,000,000

To Discount on common stock $30,000

To Paid in capital $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0

3 years ago

Net interest margin—often referred to as spread—is the difference between the rate banks pay on deposits and the rate they charg

Minchanka [31]

Answer:

(a) $P(X\:>\:5.40)=0.9938$

(b) $P(X\:$

Explanation:

(a) Find the z-value that corresponds to 5.40 percent

. $Z=\frac{X-\mu}{\sigma}$

$Z=\frac{5.40-4.15}{0.5}$

$Z=\frac{1.25}{0.5}=2.5$

Hence the net interest margin of 5.40 percent is 2.5 standard deviation above the mean.

The area to the left of 2.5 from the standard normal distribution table is 0.9938.The probability that a randomly selected U.S. bank will have a net interest margin that exceeds 5.40 percent is 1-0.9938=0.0062

(b) The z-value that corresponds to 4.40 percent is $Z=\frac{4.40-4.15}{0.5}=0.5$ The net interest margin of 4.40 percent is 0.5 standard deviation above the mean.

Using the normal distribution table, the area under the curve to the left of 0.5 is 0.6915

Therefore the probability that a randomly selected U.S. bank will have a net interest margin less than 4.40 percent is 0.6915

We substitute the 1.65 into the formula and solve for X. $1.65=\frac{X-4.15}{0.5}$

$1.65\times 0.5=X-4.15$ $0.825=X-4.15$

$0.825+4.15=X$

$4.975=X$

A bank that wants its net interest margin to be less than the net interest margins of 95 percent of all U.S. banks should set its net interest margin to 4.975 percent.

6 0

3 years ago