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3 years ago

When considering investment alternatives, its important to remember the relationship between risk and return, which is:?

1 answer:

7 0

When considering what to invest in, rate of return and risk rely on one another and create a tough decision to make. In most cases, investments that have the highest potential return have the highest risk associated. When you invest in something there is also risk but if you are willing to take a larger risk, you want to be compensated for it somewhere. If you are wanting to invest in something with a lower risk associated, you are likely going to receive a lower return on your investment.

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Your birthday is next week and instead of other presents, your parents promised to give you $2,200 in cash. Since you have a par

vfiekz [6]

Answer:

Interest revenue from the CD 470.04

Explanation:

we will calcualte the future value of the CD and from there calculate the interest:

$Principal \: (1+ r)^{time} = Amount$

Principal 2,200.00

time 8.00 (2 years x 4 quarter per year)

rate 0.02450 (9.8% divided by 4 quarter per year)

This divisions and multiplication are done to make time and rate be express i nthe same metric.

$2200 \: (1+ 0.0245)^{8} = Amount$

Amount 2,670.04

Now, we calculate interest revenue:

Amount - Principal

2,670.04 - 2,200 = 470.04

3 0

3 years ago

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to the destruction o

alexdok [17]

Answer:

the answer is C. auction off a limited number of sheep-grazing permits.

Explanation:

7 0

3 years ago

Pl lumber stock is expected to return 22 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a r

LekaFEV [45]

Expected rate of return Probabilities
Booming 22% 5%
Normal 15% 92%
Recession 2% 3%

The expected rate of return on this stock is solved by multiply each expected rate of return to its corresponding probability and getting the sum of all products.

Booming: 0.22 x 0.05 = 0.011
Normal: 0.15 x 0.92 = 0.138
Recession 0.02 x 0.03 =<u> 0.0006</u>
Sum total 0.1496 or 14.96% is the expected rate of return on this stock

3 0

3 years ago

The manager of a 100-unit apartment complex knows from experience that all units will be occupied if the rent is $900 per month.

Aliun [14]

Answer:

$950 in order to maximize the revenue.

Explanation:

The computation of monthly rent in order to maximize revenue is shown below:-

R (x) = Rent price per unit × Number of units rented

= ($900 + $10 x) × (100 - x)

= $90,000 - 900 x + 1000 x - 10 x^2

R (x) = -10 x^2 + 100 x + $90,000

Here to maximize R (x), we will find derivative and equal it to zero

R1 (x) = -20 x + 100 = 0

20 x = 100

x = 5

Therefore the monthly rent is p(5) = $900 + 10(5)

= $900 + 50

= $950 in order to maximize the revenue.

3 0

3 years ago

Often consumers base their perception of price on what they perceive to be the customary or ________.

ycow [4]

Based on other stores, and what their prices are too

3 0

3 years ago

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