All categories

3 years ago

When it comes to investing, what is the typical relationship between risk and return

2 answers:

8 0

When it comes to investing, the typical relationship between the risks and returns was that the greater the potential risk, the greater the investment return an investor will get. That is why investments are very risky, and an investor must be a risk-taker to attain such success.

omeli [17]3 years ago

3 0

In order to run a business and convert an administrator, a person must have the ability to take and bear the risk. Risk presence is a key to any business.

When it approaches to investing, one general relationship between risk and reward is that taking more risk is correlated with a greater return. However, in many cases, there is no connection between the two. For example, even though stocks tend to have a higher return than relationships, taking that risk does not establish a genuine return.

The risk is the feasible amount of damage the business might have to face. While the return is the value of interest the business may receive.

You might be interested in

CA1.4 (LO 1) (Financial Accounting) Omar Morena has recently completed his first year of studying accounting. His instructor for

natima [27]

Answer:

The complete answers are below.

Explanation:

a) The main difference between Financial Accounting and Managerail Accounting is its purposes and the stakeholders who make use of the information that each one provides.

While financial accounting refers to the aggregation of accounting information in the financial statements, management accounting refers to the internal processes used to account for business transactions.

For instance: Financial accounting reports on the results of an entire business, Managerial accounting reports at a more detailed level. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.

b) The financial statements most frequently provide are: Balance Sheet or Financial Position, Income Statement, Statement of cash flows and Statement of Changes in Equity.

c) In general, financial reports and financial statements differ in the formal status of financial statements in business and accounting, and these respond to standards such as GAAP and IFRS. While the financial reports have a format or presentation rules given by management, the financial statements, in the other hand, are prepared on regular basis as specific entities are required to do so according to applicable laws. It can be said that financial accounting provides financial statements and managerial accounting is responsible for financial reports.

4 0

3 years ago

This year Luke has calculated his gross tax liability at $2,120. Luke is entitled to a $2,880 non-refundable personal tax credit

Tema [17]

Answer:

$3,460

Explanation:

Gross tax liability $2,120

Less non-refundable personal tax credit $2,880

Refundable personal tax credit $760

Hence:

Income taxes withheld $2,700+ $760

=$3,460

Luke’s non refundable personal credit reduces his gross tax to zero ($2120– 2,880) and $760of the unused credit expires unused.

The $1,740 unused business tax credit carries over and Luke receives a refund of $3,460($760 refundable credit + $2,700 taxes he paid)

Luke’s net tax due or refund is $3,460

3 0

3 years ago

Which one of the following is a working capital decision?A. How should the firm raise additional capital to fund its expansion?B

svetoff [14.1K]

Answer:

The correct answer is letter "E": How much cash should the firm keep in reserve?

Explanation:

Working capital decisions imply working in capital cycles. They take into consideration interest rates, debtors management, and the company's financing in the short run. The working capital decisions also ensure that the organizations have enough cash to pay its bills and determine how much of the cash flow should be stored in the firm's reserve.

4 0

3 years ago

Mike and Karen were divorced. Their only marital property was a personal residence with a fair market value of $1.5 million and

Soloha48 [4]

Answer:

Mike's recognized gain from the transfer of the house to him is:

$175,000

Explanation:

a) Data and Calculations:

Marital property = $1,500,000

Cost of property = $575,000

Residual value = $925,000

Alimony to Karen = $750,000 ($150,000 * 5)

Balance (Mike's) = $175,000

$175,000 represents the excess of the fair market value of the marital property after deducting the cost of property and the alimony paid to Karen. A gain of $175,000 is recognized by Mike after the property sale.

7 0

4 years ago

Metacognition is

slega [8]

Metacognition is often referred to ask "knowing about knowing." Metacognition is the awareness or understanding of one's own thought process.

6 0

3 years ago