<span>
<span>True.
Risk in investment can be defined as the possibility that the investor may
lose a big portion or all of the initial investment or make very high returns
in a short period. Risk which is often likened to volatility dictates that
the higher the volatility the higher the chances of returns. Speculative
investments such as leveraged ETFs(commodities such as gold, oil, silver),
options, venture capital trusts are considered high risk and often so offer
handsome returns or cost the investor all or even more of their initial
capital. It is however important to note that high risk does not
automatically translate into high returns. The intrinsic value of the
investment vehicle among other factors need to be considered in depth to
determine if the investment is worth the risk</span></span>
Answer:
1. <em>Holders of the stock are entitled to receive current and all past dividends before common stockholders receive any dividends</em> - Cumulative Shares
Holders of Cumulative Shares will always receive the dividends owed to them because even if they do not get it in a particular period, the dividends will accrue until the company is able to pay them.
2. <em>Holders of the stock can receive dividends exceeding the stated rate under certain conditions - </em>Participating Shares
Participating Shareholders are eligible to receive an extra dividend provided that there is surplus profit after all the other dividends have been paid off.
<em>3. Holders of the stock are not entitled to receive dividends in excess of the stated rate. - </em>Non- Participating Shares
Even if there are surplus profits after all other dividends have been paid off, these holders are not entitled to that profit.
<em>4. Holders of the stock lose any dividends that are not declared in the current year - </em>Non- Cumulative Shares
If their dividend is not declared in a certain period, they will forfeit that dividend for the period.
Answer:<u><em>Excess Reserve = $ 27,000 - $ 22,000 = $ 5,000 </em></u>
Explanation:
Given:
Assets
:
Reserves = $27,000
Loans = $50,000
Securities = $33,000
Property = $200,000
Liabilities and net worth
:
Demand deposits = $110,000
Capital stock = $200,000
First we'll compute required reserve using the following formula:
Excess Reserves (ER) = Total Reserves - Required Reserves
where;
Required Reserves = the Required Reserve Ratio (RR) x DEPOSITS
Required Reserves = 0.20 x $ 110,000 = $ 22,000
∴
<u><em>Excess Reserve = $ 27,000 - $ 22,000 = $ 5,000 </em></u>
Answer:
b. appeals
Explanation:
<em>H</em><em>O</em><em>P</em><em>E</em><em> </em><em>T</em><em>H</em><em>I</em><em>S</em><em> </em><em>H</em><em>E</em><em>L</em><em>P</em><em>S</em><em> </em><em>A</em><em>N</em><em>D</em><em> </em><em>H</em><em>A</em><em>V</em><em>E</em><em> </em><em>A</em><em> </em><em>N</em><em>I</em><em>C</em><em>E</em><em> </em><em>D</em><em>A</em><em>Y</em><em> </em><em><</em><em>3</em>
