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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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Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considere
Mice21 [21]

Answer:

A. can choose the quantity of butter that it produces but not the price at which it sells its butter.

Explanation:

Taking into consideration the characteristic of the market explained in the exercise we would say that it is a Competitive Market.

One of the characteristics of a Perfect Competitive Market is that the price of the products is determined by the market, which means that no single seller can't change or influence the price on its own.

Hope it helps. Good luck.

3 0
2 years ago
Appleville is a village that specializes in all forms of apple products. Suppose that each winter, when no apples are being prod
antiseptic1488 [7]

Answer:

The correct answer is c) Increasing government spending in order to increase aggregate demand

Explanation:

Fiscal policy is based on the ideas of the economist Jhon Keynes, who says that governments could stabilize the business cycle and regulate economic output by adjusting spending and tax policies.

There are two common types of Fiscal policy: "Expansionary policies and Contractionary policies".

For this problem is necessary an Expansionary policy

<u>Spending</u>: The government may generate economic expansion through increases in spending. The government could increase employment, pushing up demand and growth.

<u>Taxes</u>: When people pay lower taxes, they have more money to spend or invest, which traduce into a higher demand

8 0
3 years ago
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its n
salantis [7]

Answer: $12,500,000

Explanation:

Sales = $24,000,000

Less: Operating cost = $9,000,000

Less,l: Depreciation = $5,000,000

Earning before interest and tax = $10,000,000

Less: Tax at 25% EBIT = $2,500,000

Net income before interest = $7,500,000

Add: Depreciation = $5,000,000

Operating cashflow = $12,500,000

6 0
2 years ago
When researching a specific employer, what information should you be looking for?
SashulF [63]

Answer:

When researching a specific job What information should you be looking for?

7 Things to Research Before Any Job Interview

The skills and experience the company values. ...

Key players of the organization. ...

3. News and recent events about the employer. ...

The company's culture, mission, and values. ...

Clients, products, and services. ...

The inside scoop. ...

The person interviewing you.

Explanation:

8 0
3 years ago
Read 2 more answers
Which phrase defines gross domestic product?
ruslelena [56]
The estimation of a nation's general yield of goods and services(normally amid one monetary year) at business costs.
6 0
3 years ago
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