Answer:
he or she can potentially lose 100% of the principal amount due to a stock price decline.
Explanation:
The elderly investor is trying to invest in bluchip stocks that have high returns in order to recoup losses from his previous investment.
Generally the higher the returns on an investment the higher the risk of that investment. Investors are likely to lose their capital in higher yield investments.
A reverse convertible note is a product that is the obligation of the issuing bank and not the corporation. So if price falls below the knock in price, customer will only receive the stock at maturity and not at par. The stocks received could be worthless and investor could loose all his principal.
Answer:
Dear Professor, I just wanted to let you known I failed my homework because, after I moved I have no access to the internet. I am very sorry.
If Keynes's law applies during economic contractions and Say's law applies during economic expansion, the way in which the three goals of macroeconomics would be affected is that: trade-offs and connections may differ in the short run and the long run.
<h3>What is
macroeconomics?</h3>
Macroeconomics can be defined as a study of all the behaviors, performances, and factors that affect the entire economy. This ultimately implies that, macroeconomics typically focuses on aggregate phenomena such as the following:
- Gross Domestic Product (GDP).
- Inflation
- Price level
- Economic growth.
According to the law established by John Maynard Keynes, demand is an economic factor which creates its own supply. Additionally, the way in which the three (3) goals of macroeconomics would be affected are as follows:
- Trade-offs may differ in the short run.
- Connections may differ in the short run.
- Connections may differ in the long run.
- Trade-offs may differ in the long run.
Read more on macroeconomics here: brainly.com/question/29035217
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Complete Question:
If Keynes's law applies during economic contractions and Say's law applies during economic expansion, how will the three goals of macroeconomics be affected?
determinates of total supply for the economy will be traded-off
trade-offs and connections may differ in the short run and the long run
institutional and market structures will connect factors of production
the economy will face genuine limits to how much can be produced
Answer and explanation:
Several effects could result in not following legal mandates for an organization. Lawsuits, penalties and fines, a decrease in reputation, and loss of opportunities are the most immediate. However, even if those consequences are obvious, some companies surpass legal regulations to avoid expenses that could reduce their revenue.
Answer:
C. optimal debt - equity ratio
Explanation:
Cost of capital is based on source of capital, and weights of capital, therefore major components include cost of equity, cost of debt, and their weight-age thus the debt to equity ratio plays an important role,
correct option is optimal debt - equity ratio, this ratio depicts the proportion of debt to equity.
