The idea that investors on average have earned a higher return from common stocks than from Treasury bills supports the view that: there is a relationship between risk and return.
<h3>Which investment kind normally yields the highest return?</h3>
Stocks have historically yielded investments with the highest average rate of return. However, stock is one of the riskiest investments because there are no assurances of earnings when you purchase shares.
<h3>What is the relationship between an investment's risk and projected return?</h3>
The return needed to entice investors to buy an asset is higher the riskier the investment is, and vice versa. It is clear from the link between risk and return that investors are risk averse; they need HIGHER rates of return to be persuaded to invest in riskier securities.
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Answer:
The answer is "In the <u>classical</u> view, there are ample loanable funds available at the current interest rate. When G increases, no crowding out occurs, interest rates do not rise, and aggregate expenditures rise by the full amount of G."
Explanation:
In the classical view, the capital market will find the balance between the demanded investment quality and the supplied savings one itself. However, in the Keynesian view, for example during a recession, government spending (G) will increase and there will be a competition to acquire available capital supply, that leads to the crowding out occurs and the general interest rate increases.
The answer is A because if you don’t season the meat it won’t have flavor to hold to
Answer:
Disintermediation.
Explanation:
Disintermediation can be defined as the removal of middlemen from a business transaction. This means that the producers carry out transactions directly with the customers.
Disintermediation reduces cost and increases efficuency because the consumers can now purchase the product at a cheaper price from the producers due to the fact that the middlemen have been exempted from the purchasing process.
Disintermediation can also lead to an increased burden on the producers because they are solely in charge of supplying goods to potential customers.