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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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The _____ directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of pro
WINSTONCH [101]

Answer:

The economic model of corporate social responsibility (CSR)

Explanation:

The <u>economic model of corporate social responsibility</u> directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit.

3 0
3 years ago
Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.
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The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.

The required details for Economic shocks in given paragraph

An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.

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6 0
1 year ago
How unemployment is impacting on the south africa economy?
Evgesh-ka [11]
Unemployment continues to rise to unacceptable level. As David Lipton said if the government are to navigate this dangerous period. Government must respond concretely to all of these challenges. Despite of political obstacles.  This is important to all countries specially South Africa.
7 0
3 years ago
Teams and groups tend to have very rigid rules and consequences. True or false
mr Goodwill [35]
That statement is true

A team or a group usually formed based on one similar goals or point of views among the members and a lot of them set up a couple of rules to be imposed among their members to prove that they're committed to the group and its cause.
8 0
3 years ago
Read 2 more answers
Fitz Company reports the following information.
Karolina [17]

Answer:

Net cash from operating activities is $527,000.

Explanation:

This can be prepared as follows:

Fitz Company

Statement of cash flows

(Operating activities section only)

For the year ended December 31.

<u>Details                                                                      $           </u>

Net income                                                        412,000

Adjustment to reconcile net income:

Depreciation expense                                       50,000

Amortization expense                                         7,300

Gain on sale of plant assets                              (7,400)

(Increase) decrease in current assets:

Accounts receivable decrease                         33,400

Inventory decrease                                            47,500

Prepaid expenses increase                               (6,200)

Increase (decrease) in current liabilities:

Accounts payable decrease                            (10,900)

Salaries payable increase                           <u>         1,300   </u>

Net cash from operating activities          <u>     527,000   </u>

3 0
3 years ago
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