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IgorLugansk [536]
4 years ago
11

What rule is important to remember when evaluating risk and return? The higher the risk, the higher the potential return. The hi

gher the risk, the lower the potential return. The lower the risk, the higher the potential return. There is no connection between risk and return.
Business
2 answers:
Kay [80]4 years ago
6 0

Answer:

The correct answer is A.

andrew-mc [135]4 years ago
5 0

Answer: The higher the risk, the higher the return.

Returns from an investment refers to the gains or losses over a specified period, and is quoted as percentage.  

Risk refers to the possibility or the chance that the actual return that is earned is greater than or less than the return expected by the investor. Thus, uncertainty is another name for risk.  

If the returns from an investment are certain, the risk involved is low. When risk is low, the returns are also low. For e.g. the return from a T-bill is low because the risk of default is zero, since the government can print money to fund its debt.  

The higher the level of risk involved, the greater the potential for a higher return.  

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To retain high-performing engineers, a large semiconductor company provides corporate stock as part of the compensation package.
ki77a [65]

Answer:

class A stocks

Explanation:

in 5 years, class A stock will be worth = $30 x (1 + 6%)⁵ = $40.15

in 5 years, class B stock will be worth = $20 x (1 + 12%)⁵ = $35.25

now we need to determine the present value if each stock:

class A stock present value = $40.15 / (1 + 8%)⁵ = $27.33

class B stock present value = $35.25 / (1 + 8%)⁵ = $23.99

since the present value of class A stock is higher, then the engineers should select that type of stocks.

8 0
3 years ago
Oriole Company has old inventory on hand that cost $24750. Its scrap value is $33000. The inventory could be sold for $82500 if
lara [203]

Answer:

Manufacture further and sell it for $82,500

Explanation:

Profit in such case will be:

Sales amount                  $33,000

Less: Cost of Inventory   $24,750

Profit                                 $8,250

Process further and sell.

Profit will be:

Sales value:                              $82,500

Less: Further processing cost $24,750

Less: Cost of Inventory           $24,750

Profit on Inventory                   $33,000

6 0
3 years ago
What was the innovative way pears’ soap marketed its product?
Degger [83]

Brand name was the innovative way pears’ soap marketed its product.

Brand name is one of the brand elements by which customers are helped to identify and differentiate one product from another. It should be chosen very carefully.

It captures the key theme of a product in an efficient and economical manner. It can be noticed easily and its meaning can be stored and triggered in the memory instantly.

Choice of a brand name requires a lot of research. Brand names are not necessary to be associated with the product.

For example , brand names can be based on places such as Air India or British Airways, animals or birds name such as Dove soap, Puma, people name such as Louise Phillips, Allen Solly etc. In some instances, the company name is used for all products  for example, General Electric, LG.

To know more about brand name here:

brainly.com/question/7160416

#SPJ4

6 0
2 years ago
On December 31, 2021, Crane, Inc. leased machinery with a fair value of $2125000 from Cey Rentals Co. The agreement is a 6-year
Stells [14]

Answer: $1554228

Explanation:

Calculation of the lease liability that Crane should report in its December 31, 2021 balance sheet goes thus:

Annual Lease payment= $410,000

The present value of an annuity due of 1 for 6 years at 10% = 4.7908

We multiply the lease rentals by the present value of an annuity due of 1 for 6 years at 10%. This will be:

= $410,000 × 4.7908

= $1964228

We then subtract the first lease payment of $410,000 from the value gotten above. This will be:

= $1,964,228 - $410,000

= $1,554,228.

4 0
3 years ago
You have $6,000 and will invest the money at an interest rate of .23 percent per month until the account is worth $11,200. How m
Tcecarenko [31]

Answer:

22.94 years

Explanation:

The formula to calculate the number of periods of time is:

n =  ln(FV / PV)/ln(1+r), where

n= number of periods of time

FV= Future value= $11,200

PV= Present value= $6,000

r= interest rate= 0.0023*12 (to calculate the rate per year)= 0.0276

n=ln(11,200/6,000)/ln(1+0.0276)

n=0.624/0.0272

n=22.94

According to this, you have to wait 22.94 years until you reach your target account value.

7 0
4 years ago
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