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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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How much money should you get selling gold for cash?

Viefleur [7K]

Enough to buy a Mercedes Benz.

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2 years ago

Investors require an after-tax rate of return of 10% on their stock investments. Assume that the tax rate on dividends is 30% wh

IgorC [24]

Answer:

a. $28.5

b. 12.28%

c. $29.18

d. 13.09%

Explanation:

a. let current price = p

p*1.10 = 2(1-0.3)+30

= 1.4+30/1.10

= 31.4/1.10

= 28.5

the current price of the stock is approximately 28.5 dollars

b. (30+2 /28.5)-1

= 32/28.5 - 1

= 0.1228

= 12.28%

expected before tax rate is 12.28%

c. 3(1-0.3)+30 / 1.10

= 3*0.7+30/1.10

= $29.18

d. before tax rate of return

= (3$ + 30-29.18)/29.18

= 0.1309

= 13.09%

it is now higher here given that given that a greater dividend causes more tax burden.

6 0

2 years ago

____________ is a condition that must be satisfied before a party’s contractual obligation to perform becomes absolute (e.g., Bo

statuscvo [17]

Consent I think is the answer

8 0

2 years ago

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 35,000 cases of cola were sold every we

galben [10]

Mark brainlest please

Answer:

The amount of tax will be $3
Tax Burden on consumer is $2
Tax burden on producer ( in case you want to know) will be $1

Check the image below.

Tax is equal to the difference between the price actually paid by the buyer and the price actually received by the seller. Tax= Price paid by buyer-Price received by seller Tax= $8-$5 Tax = $3 Thus the tax computed is $3 per case.

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2 years ago

1.Economics is the study of ____________________ and _________________________.2.What is opportunity cost

jolli1 [7]

Answer: See explanation

Explanation:

Economics is the study of human behavior and also how resources are allocated in the society. Economics studies the reason for the behavior in the individuals, firms or government when certain situations happen in the economy.

Opportunity cost is refered to as n alternative cost that's, the cos if what we forgo when we make an alternative decision. For example, if I purchase a book for $20, the opportunity cost is something else that I could have used the $20 for.

4 0

2 years ago