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
dem82 [27]
3 years ago
6

Stocks are considered less risky than bonds, because______________.

Business
1 answer:
Misha Larkins [42]3 years ago
3 0

Answer:

b. more risky than bonds, because stock prices and profits are highly variable.

Explanation:

Stocks refer to share of a company that gives part ownership on it and bonds are an instrument in which the investors lend money to the issuer who is committed to pay the money and the interests. Stocks are considered more risky than bonds, because stocks tend to fluctuate more. Also, bonds promise to return the money paid for them and a fixed interest rate which stocks don't promise. Because of this, the answer is that stocks are more risky than bonds, because stock prices and profits are highly variable.

You might be interested in
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
g100num [7]
Have no clue sorry that is not the answer
8 0
3 years ago
Dee's Fashions has a growth rate of 5.2 percent and is equally as risky as the market while its stock is currently selling for $
emmasim [6.3K]

Answer:

12.6%

Explanation:

Using the Capital Market Pricing Model (CAPM) to compute the expected rate of return on Dee's Fashion stock.

Expected rate of return = R_{f} +\beta (R_{m} -R_{f} )

Where R(f) = risk free rate of return, or market return less risk premium = 12.6% - 8.7% = 3.9%

\beta = the risk of the stock relative to the market risk. In this case, beta = 1, since the company is equally as risky as the market (as noted in the question)

R(m) = return of the stock market = 12.6%

Therefore, the expected rate of return on the stock

= 3.9% + 1 * (12.6% - 3.9%)

= 3.9% + 8.7%

= 12.6%.

The return is the same as the stock market return because the stock is equally as risky as the market.

5 0
4 years ago
write atleast 2 policies that a company could use to decide which customers to offer credit to? hurry im in a rush to a bday par
Stolb23 [73]

Answer:

Companies could offer credit to customers who pay and have beneficial rewards.

Companies could also offer credits to senior citizens as a promotional thing

Explanation:

3 0
3 years ago
For probation, the defendant will meet certain requirements, which usually include reporting to a probation officer on a regular
ohaa [14]
<span>When one is on probation for violating the law, all of the following are correct. They must report to the probation officer to ensure they are still being lawful and to address any concerns they are having, they must hold a steady job to ensure they are being a contributing member of society, and they may have to pay fines or restitution based on what their violation was.</span>
8 0
4 years ago
Read 2 more answers
How does an increase in income increase tax revenue​
earnstyle [38]

Answer:

An increase in income will increase tax revenue because the more taxes and tax write-offs will lead to more in tax returns.

Explanation:

The more income you make the more taxes you will pay, after write-offs you will end up earning more back in tax returns than you would if you made less

6 0
3 years ago
Other questions:
  • "which group of organizational participants has the most vague job description?"
    14·1 answer
  • Storico Co. just paid a dividend of $1.85 per share. The company will increase its dividend by 24 percent next year and will the
    6·1 answer
  • Martinez Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $19
    5·1 answer
  • Other things the same, an increase in the budget deficit a. shifts the demand for loanable funds right, so the interest rate ris
    8·2 answers
  • Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 15 percent of their salary. His a
    11·1 answer
  • Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense for $47,000. The accountant preparing the
    12·1 answer
  • 1. What question should your content always answer?
    8·1 answer
  • The following information is available for Marks Company at December 31, 2019:
    6·1 answer
  • The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
    5·1 answer
  • Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $28
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!