All categories

3 years ago

What is the relationship between risk and return?

Business

1 answer:

PolarNik [594]3 years ago

8 0

Answer: A higher risk often means a higher return.

Explanation: Risk can be defined as the potential effect of an event, determined by combining the likelihood of the event occurring with the effect that it should occur.

Return can be defined as a gain or loss from an investment.

The relationship between risk and return is that the higher the risk, the higher the returns, however, a higher risk has a potential for loss. Hence, the word often in the statement "A higher risk often means a higher return."

A lower risk does not always mean a lower return, a lower risk has a potential for a higher return.

You might be interested in

The simplicity of the metric system lies in the relationship of the expression of quantity (how much) based on the number ? .

Westkost [7]

The metric system is based on the number 10 so that in linear measurement, there is a mm, a cm a metre and a kilometer such that10mm = 1cm and 100 cm = 1 metre and 1000 metres = 1 kilometre. In volume, there is the ml and the litre such that 1000ml=1litre and with grams and kilograms, 1000 grams = 1 kilogram.

7 0

3 years ago

A shoe company invests $300,000 in equipment to produce a new line of athletic footwear. Each pair of shoes costs $15 to produce

jekas [21]

Pair of footwear costs $15 to supply and sells for $70.A shoe organization sells 5455 gadget pairs of shoes.

The costs function refers back to the useful dating between cost and output. It studies the behavior of price at distinctive ranges of output while generation is assumed to be steady. it may be expressed as under C= f(Q) (here, C= price of production; and Q= Quantum of output).

The Costs function measures the minimal value of producing a given degree of output for some fixed element costs. The fee feature describes the economic opportunities of a company. type of quick-run price features: average (total) fees. average constant charges.

A price feature is a characteristic of input expenses and output quantity whose cost is the price of making that output given the ones enter prices, often carried out via using the cost curve with the aid of agencies to reduce fees and maximize manufacturing performance.

Learn more about costs function here: brainly.com/question/2292799

#SPJ4

5 0

2 years ago

What does the A mean in smart

Mumz [18]

Answer:

attainable

Explanation:

specific
measurable
attainable
realistic
and time bound

5 0

3 years ago

Journalize the following transactions in the accounts of Sedona Interiors Company, a Restaurant Supply Company that uses the all

svp [43]

Answer:

Accounts Receivables 19900 debit

Sales Revenues 19900 credit

--to record sale--

COGS 14300 debit

Inventory 14300 credit

--to record COGS of the previous sale--

Cash 4,200 debit

Accounts Receivables 4,200 credit

--to record colelction from Beijing Palace Co--

Allowance for doubtful accounts 15,700 debit

Accounts Receivables 15,700 credit

--to record the write-off using allowance method--

Accounts Receivables 15,700 debit

Allowance for doubtful accounts 15,700 credit

--to record reversal when payment is received--

Cash 15,700 debit

Accounts receivables 15,700 credit

--to record collection from Beijing Palace Co--

Explanation:

We write-off the blaance of the account

19,900 - 4,200 = 15,700

Then, we have to reverse the entry to nulify it. Then we record the colelction like any other.

4 0

3 years ago

How much would $300 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent.

Jet001 [13]

<span>You are given an initial investment of $300 at 4% interest compounded monthly after 8 years. The solution to this question is shown below.

</span>A(t) = P(1+r/n)^nt
A(8) = 300(1+0.04/12)^12(8)
A(8) = 300(1+0.04/12)^96
A(8) = 300(1.033)^96
A(8) = $412.91

8 0

3 years ago

Read 2 more answers