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2 years ago

What is the relationship between risk and return?

Business

1 answer:

PolarNik [594]2 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.

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Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift a. demand,

Sedbober [7]

Answer:

b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.

Explanation:

In the case when the government impose the tax of 20% on sweetened beverages so here the price should be increased but at the same time the quantity is decreased as the supply curve shifted to the leftward where the demand curve is not impacted at all due to this things the price increased and the demand is decreased

Therefore the option b is correct

4 0

2 years ago

In your opinion ,what is the correct priority in making a business decision?#1 personel integrity,organizational values,profit..

kumpel [21]

The correct priority in making business decision is:

<span>#3 profit, organizational values,personal integrity.

The main reason why you put up a business is to gain profit. Thus, it is a priority. Second consideration would be the organizational values. Organizational values will determine the longevity of the company and the tenure of its employees.</span>

5 0

3 years ago

Your boss asks you to email a spreadsheet that shows what the company owns and what it has borrowed (owes) at a fixed point in t

mariarad [96]

Answer:

The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.

Explanation:

Balanced sheet

A balance sheet is an annual report of finance that accounts at a particular time on the funds, debts or on equity of any corporation and lays the foundation of calculations for calculating return rates and determining its financial performance of the company.

The balance sheet represents the total assets of the company and how they are funded, whether through equity or by debts.

3 0

2 years ago

Read 2 more answers

The "over-the-counter" market received its name years ago because brokerage firms would hold inventories of stocks and then sell

Svetradugi [14.3K]

Answer:

false

Explanation:

Over-the-counter refers to the process of how securities are traded for companies not listed on a formal exchange. Securities that are traded over-the-counter are traded via a dealer network as opposed to on a centralized exchange.

5 0

3 years ago

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock

shepuryov [24]

Answer:

$13,000,000

Explanation:

Given that,

Total Book Value of Equity = $20,000,000

Common stock outstanding = 1,000,000 shares

Selling price per share = $33.00

Market value of equity:

= Selling price per share × Shares outstanding

= $33.00 × 1,000,000

= $33,000,000

O'Brien's MVA:

= Market value of equity - Total Book Value of Equity

= $33,000,000 - $20,000,000

= $13,000,000

3 0

2 years ago