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azamat
3 years ago
15

Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will

occur, and there is a trade-off between risk and return. The higher an investment’s risk, the
Business
1 answer:
Ulleksa [173]3 years ago
6 0

Answer:

The higher an investment’s risk, the HIGHER THE RETURNS AN INVESTOR WILL REQUIRE.

Explanation:

By saying that investors are risk averse, it means that given a similar level of returns, an investor will choose the investment with the lowest risk. That is why investors generally prefer and are willing to pay more for less risky investments, which results in lower returns (higher price ⇒ lower returns).

So high risk investments will always have a lower price than low risk investments, since the returns demanded by investors are proportional to the risk of the investment.

You might be interested in
A country produces only one good. It produced​ 5,000 units of the good during Year 1 and​ 6,000 units of the good in Year 2. The
Veseljchak [2.6K]

Answer:

.A) $1, 920,000

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

Nominal GDP is the GDP of country using current year prices

Nominal GDP = current year price × quantity

(6000 × 320) = $1,920,000

I hope my answer helps you

3 0
3 years ago
One criteria for deciding whether to have a server active all the time or have it start on demandusing a process server is how f
belka [17]

Answer:

The other criteria could be about the expected delay that is acceptable to customer in the processing time of the server.

Explanation:

If the customers are ready to accept a certain delay then it can help making the decision whether to keep the server permanently on, as it consumes high power.

Also if it is not used all the time then keeping it on all the time would be wastage of resources.

Thus, the scheduling of the expected time at which they use, and the acceptable delay would provide a proper criteria for this.

4 0
3 years ago
Explain why accurate measurement is so important in baking.
Fittoniya [83]
Accurate measurement is VERY important in banking because banking is all about exact calculations. If one balance measure is off, the entire bank report will not be acurate. One little mess up and the entire calculation goes wrong. 
5 0
3 years ago
On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted
Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ;  0.78356 (factor for calculating the amount to be recieved after  5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0
3 years ago
__________ is a condition in international trade when the value of the imports into a nation is greater than the value of its ex
Tema [17]

Answer: The answer is trade deficit.

Explanation: Balance of trade is represented by net exports (exports minus imports) and is usually influenced by factors that affect international trade. Those factors inflation include: inflation, natural endowment, exchange rate, trade policy, pandemics (e.g., coronavirus).

A trade surplus occurs when the value of a nation's exports is more than the value of its imports. However, trade deficit occurs when the opposite happens.

7 0
3 years ago
Read 2 more answers
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