All categories

2 years ago

Speculative investments are high-risk investments with the possibility of high returns in a short period of time.

2 answers:

8 0

<span> <span>True. Risk in investment can be defined as the possibility that the investor may lose a big portion or all of the initial investment or make very high returns in a short period. Risk which is often likened to volatility dictates that the higher the volatility the higher the chances of returns. Speculative investments such as leveraged ETFs(commodities such as gold, oil, silver), options, venture capital trusts are considered high risk and often so offer handsome returns or cost the investor all or even more of their initial capital. It is however important to note that high risk does not automatically translate into high returns. The intrinsic value of the investment vehicle among other factors need to be considered in depth to determine if the investment is worth the risk</span></span>

oee [108]2 years ago

3 0

the answer would be true

You might be interested in

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per

kupik [55]

Answer:

$192,000

Explanation:

Calculation for What is the value of ending inventory under variable costing

Using this formula

Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]

Let plug in the formula

Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]

Value of ending inventory= ($15 units+$9 units)×8,000 units

Value of ending inventory=$24 per units×8,000 units

Value of ending inventory = $192,000

Therefore the value of ending inventory under variable costing will be $192,000

8 0

2 years ago

During a period of economic expansion, when expected profitability is high, the: select one: a. Equilibrium price of bonds incre

spin [16.1K]

During a period of economic expansion, the demand curve for bonds shifts to the left.

<h3>What is the effect of an economic expansion?</h3>

During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.

If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.

Here are the options to this question:

A) the demand curve for bonds shifts to the left.

B) the supply curve of bonds shifts to the right.

C) the equilibrium interest rate falls.

D) the equilibrium price of bonds rises.

To learn more about economic expansion, please check: brainly.com/question/831569

#SPJ12

4 0

2 years ago

A bond that pays interest semiannually has a coupon rate of 5.44 percent and a current yield of 4.91 percent. The par value is $

Aleksandr [31]

Answer:

Results are below.

Explanation:

Giving the following information:

Cupon rate= 0.0544/2= 0.0272

YTM= 0.0491/2= 0.02455

The par value is $1,000

<u>We weren't provided with the number of years of the bond. I imagine for 9 years.</u>

<u>To calculate the bond price, we need to use the following formula:</u>

Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price= 27.2*{[1 - (1.02455^-18)] /0.02455} + [1,000*(1.02455^18)]

Bond Price= 391.93 + 646.25

Bond Price= $1,038.18

4 0

2 years ago

A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D = 18', and side E = 55'. What is

enyata [817]

Answer:

275

Explanation:

You will add all the figures;that is;44+67+91+18+55=275

5 0

2 years ago

Devin is a landscaper who needs to prepare different types of grass seed for his customers' yards. Bluegrass seed costs $2.00 pe

IgorLugansk [536]

Answer:

7 pounds

Explanation:

To solve this we need to use simultaneous algebraic equations.

Assume

x = 1 pound of bluegrass seed

y = 1 pound of drought resistant seed

Our first equation considers the number of pounds

x + y = 25

y = 25 - x

For the combined bluegrass seeds and thought resistant seeds bought

For the second equation we consider the price

2x + 3y = 68

Substitute value of y in equation 2

2x + 3(25 - x) = 68

2x + 75 - 3x = 68

x= 7

So the amount of bluegrass seed is 7

We can also get the amount of drought resistant seed from equation

7 + y = 25

y = 18

3 0

3 years ago