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sergejj [24]
3 years ago
14

Recession, inflation, and high interest rates are economic events that are best characterized as being a. systematic risk factor

s that can be diversified away. b. among the factors that are responsible for market risk. c. irrelevant except to governmental authorities like the Federal Reserve. d. company-specific risk factors that can be diversified away. e. risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers.
Business
1 answer:
Shalnov [3]3 years ago
3 0

Answer:

The correct answer is letter "B": among the factors that are responsible for market risk.

Explanation:

Market risk is the threat of an investment value falling due to factors that affect all market-wide investments. Investors always take on a certain level of risk. There is always the risk that their investments do not achieve expected returns. The risk falls into two categories: <em>Systematic risk </em>and <em>Unsystematic Risk. </em>

<em>Interest rates fluctuations, recession, and inflation are considered market risks.</em>

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The Conways received close to $40 million from the sale. However, shortly after the sale, the Conways regretted signing the non-
Lyrx [107]

Answer:

Incorrect

Explanation:

The Bard company has paid millions of dollar of consideration and requires that the Philip Conway Inc. would transfer the ownership of the RM Corporation to Bard. The court dismissed the case and said that the subsidiary is the property of Bard now because their was a flow of consideration from the part of Bard.

6 0
3 years ago
What are organizations that are in the business of benefiting society and operate like a business called
Rudik [331]

Answer:

Nonprofit organisation

Explanation:

A nonprofit organisation is also known as nonbusiness entity is dedicated to promoting a social cause by taking surplus in the society to further a particular objective. Nonprofit organisations are usually exempt from tax for the contributions they receive.

There are not accountable to shareholders but rather to donors, volunteers, program recipients, and the community at large.

4 0
4 years ago
Type the correct answer in the box. Spell all words correctly. What factor reflects the ‘cost of money’? The ‘cost of money’ is
Serga [27]

1) Production Opportunities

2) Time Preferences for Consumption

3) Risk

4) Inflation

Explanation:

These are the factor reflects the ‘cost of money. The cost of the borrowing is the rate of interest paid by the lender to the creditor by the supply and demand of the assets.

1) Production Opportunities  : Investment Opportunities to produce competitive (cash) assets.

2) Time Preferences for Consumption  : Present market choice rather than potential demand savings.

3) Risk  : The probability of a small or unfavourable return on an investment.

4) Inflation  : The price will growing over time.

6 0
3 years ago
There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
Mashutka [201]

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

5 0
3 years ago
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate
Nikitich [7]

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300

8 0
3 years ago
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