1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aivan3 [116]
3 years ago
5

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

Business
2 answers:
Harlamova29_29 [7]3 years ago
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
The deadweight loss from a tax is likely to be greater with a good that has Select one: a. many substitutes. b. an inelastic dem
Lorico [155]

The deadweight loss from a tax is likely to be greater with a good that has many substitute.

<h3>What is deadweight loss?</h3>

This refers to scenario, tax imposed create loss of economic sufficiency; when the supply of goods and services aren't met.

Dead weight loss is the inefficiency that occurs when the market is not in equilibrium.

Learn more about deadweight loss here: brainly.com/question/26362939

#SPJ1

3 0
2 years ago
A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights
bekas [8.4K]

A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.

Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.

Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.

Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.

Learn more about commitment here: brainly.com/question/472211

#SPJ4

6 0
2 years ago
The interest rate on short-term U.S. government bonds is 4 percent. The risk premium for any asset with a beta = 1.0 is 6 percen
Basile [38]

Answer:

The average expected rate of return on the market portfolio is 10 percent.

Explanation:

The CAPM (fixed asset pricing) model describes the relationship between systematic risk and expected return on assets, especially stocks. CAPM is widely used throughout the financial community to value high-risk securities and achieve the expected returns on assets when taking into account the risk of those assets and the cost of capital.

The formula for calculating the expected return on an asset taking into account its risk is as follows:

ERi = Rf + βi (ERm - Rf)

where:

ERi = expected return on investment

Rf = risk-free interest rate = 4 percent.

βi = beta inversion =1.0

(ERm −Rf) = market risk premium = 6 percent.

ERi = 4 + 1 ×(6) =10

The average expected rate of return on the market portfolio is 10 percent.

6 0
3 years ago
Venzuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issue
aev [14]

Answer:

$4.67 per share

Explanation:

The calculation of the diluted earning per share is given below:

= (Total income - preference dividends) ÷ (outstanding shares + diluted shares)

where,

Total income is $50,000

Outstanding shares is 10,000

And, the diluted shares is computed by following calculations

Amount paid towards shares = Options issued × Exercise price per share

= 1,000 × $6

= $6,000

And,

Value of options = Amount paid towards shares ÷ Current market price

= $6,000 ÷ $20

= 300

Therefore,

Diluted shares is

= Options issued - value of options

= 1,000 - 300

= 700

So Diluted Earnings per share is

= ($50,000) ÷ (10,000 + 700)

= $4.67 per share

4 0
3 years ago
[7×(2+3)]-20= ?<br>This is a grouping symbols math. This one is hard.
malfutka [58]
First solve the inner parenthesis.

[7 * (5)] - 20

Solve what is in the parenthesis.

35 - 20= 15

Hope this helps!
7 0
3 years ago
Read 2 more answers
Other questions:
  • What does partnership form of business imply
    5·2 answers
  • A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributed with a mean o
    6·1 answer
  • Assume that the following balance sheet portrays the state of the banking system. the banks currently have no excess reserves.
    7·1 answer
  • a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following
    8·1 answer
  • On February IN , Marshak's investment account has a balance Of $19,800. He deposited ,200 on April I and $2,600 on May l . He wi
    10·1 answer
  • Zully has obtained an SBA loan to start a new business in her town. She has an arrangement with Ford Motor Company to be the exc
    12·1 answer
  • Wasilko Corporation produces and sells one product The budgeted selling price per unit is $114. Budgeted unit sales for February
    6·1 answer
  • According to the video, what are some tasks Electrical Engineers perform? Check all that apply.
    7·2 answers
  • A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $20,
    5·1 answer
  • Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!