Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
There are many types of investments. Some of them the given types of investment in the list.
A. Property are ownership investments. They are Real estate investments ( houses, apartment buildings, townhouses, and vacation houses. )
<span>They are the most volatile and profitable class of investment.
B. Bonds are lending investments. when </span>an investor effectively is loaning money to a company or agency (the
issuer) in exchange for periodic interest payments plus the return of
the bond’s face amount when the bond matures.
C. Staring a business - this is not an investment, but a whole process that needs investments to be realized.
D. Mutual funds are investment <span>funds
collected from many investors for the purpose of investing in
securities such as stocks, bonds, money market instruments and similar
assets.</span>
The order from the least risky to the most risky investment is:
B. Bonds
D. Mutual funds
A. Property
C. Starting a business
Answer:
The correct answer is C) purchase Canadian dollar put options.
Explanation:
A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.
The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.
Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.
Answer:
Limited natural resources such as infertile land and lack of coastal access can limit economic growth for a country.
Explanation:
Natural resources are a source of wealth for the country. Mineral such oil and precious stones have made nations wealthy.
Land is a factor of production. Lack of fertile lands will make a nation dependent on imports for its food security. Access to coastal areas facilitates cheaper and fast international trade. Landlocked countries use harbor of other nations for global business. Goods and services from landlocked counties may be more expensive as a result of high transport costs.
