Answer:
A. High
Explanation:
When an investment is considered risky, investors would demand a high rate of return as compensation for holding a risky investment.
The required rate of return is usually higher than the short term t bills rate.
I hope my answer helps you.
Answer:
using I-language, focusing on issues and critically evaluating ideas
Explanation:
"Productive conflict" refers to giving both parties who have varying opinions a chance to speak their arguments or positions. The goal of this is for both parties to arrive at a resolution<em> in the most graceful way as possible.</em>
Using "I-language" allows the person to be heard without asserting aggressiveness. It doesn't lead to defensiveness, thereby reducing the other side from retaliating.
"Focusing on issues" allows the focus to be centered on what matters the most. This allows both parties to concentrate and deal with the issue properly.
"Critically evaluating ideas" allows each party to come up with a reasoned judgement and analyze the opinion of the other person. <u>Both positive and negative side</u> should be addressed in order for the conflict to be productive.
Answer:
Rate of interest is 8.37%
Explanation:
Future Value = 
3,500 = 2750 
=
![\sqrt[3]{\frac{3500}{2750}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%5Cfrac%7B3500%7D%7B2750%7D%7D)
= ![\sqrt[3]{(1+r)^{3}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%281%2Br%29%5E%7B3%7D%7D)
1.0837 = 1+r
r = 1.0837 - 1
r = 0.0837
r = 8.37%
Check:
3500 = 2750 
3500 = 3500
Answer:
To obtain the same returns, the interest rate in the United States should be 7.5%.
Explanation:
Since $ 1.58 dollars is equal to $ 1 euro, the difference between both currencies arises from the following calculation:
1 = 100
1.58 = X
((1.58 x 100) / 1) = X
158/1 = X
158 = X
Therefore, a euro is worth 58% more than a dollar is worth.
Thus, if the investment in Europe has an interest rate of 4.75%, to obtain the same return in dollars, an interest rate of 58% must be obtained, that is:
4.75 x 1.58 = X
7.5 = X
Thus, to obtain the same returns, the interest rate in dollars should be 7.5%.
Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
