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IgorLugansk [536]
3 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]3 years ago
6 0

Answer:

The correct answer is A.

andrew-mc [135]3 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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If the real output is at a near maximum level, which of the following should be considered?
Natasha2012 [34]

Answer:

D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.

3 0
3 years ago
The capital gains yield equals _________
Arlecino [84]

Answer:

Appreciation in Investment Value = Percentage rise in value of investment

Explanation:

Capital Gain yield equals the appreciation in an investment's price. It is measured as percentage change over the original investment acquisition value.

Capital Gain Yield = Percentage (%) rise in value of an investment

= ( Rise in Value of Investment / Original Value of investment ) x 100

Eg : If a security purchased for 100 is now for 125 ;

Capital Gain Yield = (25 / 100) x 100

=  25%

7 0
3 years ago
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military
kap26 [50]

Answer:

A. Multifactor productivity

Original Value of output 2500 un. x $200/un. = $500,000 Value of input 2500 un x $120/un. = $300,000 Multi-factor productivity $500,000/$300,000 = 1.67 Overtime Value of output 4000 un. x $200/un. = $800,000 Value of input 4000 un. x $144/un. = $576,000 Multi-factor productivity $800,000/$576,000 = 1.39 Multi-factor productivity (1.67 – 1.39) / 1.67 = 16.8% decrease

B. LABOR PRODUCTIVITY

Original Value of output 2500 un. x $200/un. = $500,000 Input = (100 people x 40 hr/person) = 4000 hours Labor productivity $500,000/4000 hr = $125/hr Overtime Value of output 4000 un. x $200/un. = $800,000 Input = (100 people x 72 hr/person) = 7200 hours Labor productivity $800,000/7200 hr = $111/hr Labor productivity ($125/hr – $111/hr) / $125/hr = 11.1% decrease

C.GROSS PROFITS

Original $500,000 - $300,000 = $200,000 Overtime $800,000 - $576,000 = $224,000

$24,000 increase

5 0
2 years ago
we are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. assume that depreciation is s
alukav5142 [94]

A project's susceptibility to undesirable fluctuations in the value of the underlying factors, such as the sales price, sales units, its indirect cost, and other variables, is assessed using sensitivity analysis.

<h3>Sensitivity analysis: What is it?</h3>

According to a specific set of assumptions, sensitivity analysis evaluates how various values of an exogenous variables impact a specific dependent variable. In other words, analyses look at how different types of ambiguity in a mathematical formula affect the overall level of uncertainty in the model.

<h3>Briefing:</h3>

Project has an eight-year lifespan, costs $848,000, and has no residual value. Over the course of the project's life, depreciation decreases linearly to zero.

Depreciation = $848,000 / 8 = $106,000

Contribution margin per unit = selling price - variable cost per unit

= 40 - 20 = $20 per unit

Accounting break-even point = (Fixed costs + Depreciation) / Contribution per unit

= (625,000 + 106,000) / 20

= 36,550 units

To know more about Sensitivity analysis visit:

brainly.com/question/14293513

#SPJ4

8 0
1 year ago
The budget for the month of May was for 11,200 units at a direct materials cost of $19 per unit. Direct labor was budgeted at 28
rjkz [21]

Answer:

Direct labor price(rate) variance = $1,675  (unfavorable)

Direct labor efficiency variance = 0

Explanation:

As per the data given in the question,

Number of units = 11,200

cost = $19 per unit

Labor budgeted = at 28 minutes per unit

Total budget = $100,800

Actual output = 8,900 units

Direct material expense = $137,500

Direct labor expense = $81,775

As per the following formula,

Direct labor price variance = (Actual price - Standard price) × Actual hour

= ($81,775 ÷ 8900 × 2 - $100,800 ÷ 11,200 × 2) × 8,900 ÷ 2

= $1,675  (unfavorable)

Direct labor efficiency variance = (Actual hour - Standard hour) × Standard price

= (8,900 × 28 ÷ 60 - 8,900 × 28 ÷ 60 ) × $100,800 ÷ 11,200 × 2

= 0

5 0
3 years ago
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