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erastova [34]
3 years ago
10

The risk that actual returns will not match or exceed expected returns is called:________a. investment risk. b. asset class risk

. c. market risk. d. default risk. e. opportunity cost.
Business
1 answer:
Alex73 [517]3 years ago
8 0

Answer:

a. investment risk

Explanation:

Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".

Investment risk: We can define it as the inappropriateness between the actual and expected returns. Because on this type of risk, there may be occurrence of any losses with some probability or likelihood which will be relative the expected return.

Asset class is about the grouping process of investments which have some mutual or similar characteristics. The risk on this case is something has relative elasticity compared to another investment in the market.  Usually, there is 3 groups of asset classes: equities, bonds and money market instruments.

The market risk which is called sometimes as systematic risk. This risk consider the entire market and has effects on this scale. The investor who undertook this risk will see that the factors which affect the overall performance of the whole marketplace.

Opportunity cost is the cost when you have purchased, chose or bought  the product compared to another product. However, you will notice that if you buy another one you will get more value or consumer surplus but you have just bought and you missed chance. This is the opportunity cost

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Answer:

C seems the most reasonable

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2 years ago
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Hoochie [10]

Answer:

$10,200

Explanation:

The computation of the deferred income tax expense or benefit is shown below:

Favorable temporary difference = $50,000

Less:  Unfavorable temporary difference -$20,000

Net favorable temporary difference $30,000

We assume the tax rate is of 34%

So, the deferred tax expense is

= $30,000 × 34%

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By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above

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3 years ago
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market
vampirchik [111]

Answer:

$5,412,000

Explanation:

The semi annual interest = $20

Periods (n) till maturity are 10*2 = 20

Discounting rate is 12%/2 = 6%

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Market Value = 20 * PVIFA (20,6%) + 1,000 * PVIF (20,6%)

Market Value = 20 * 11.4699 + 1,000 * 0.3118

Market Value = 229.398 + 311.8

Market Value = 541.198

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Current market value = Number of bonds * Market value

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Current market value = $5,412,000

8 0
3 years ago
Discuss any 5 measures introduced by the government to fight poverty in south Africa​
Sergeeva-Olga [200]

Answer:

<h3>⭐Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.</h3>
5 0
3 years ago
You decide to save a uniform amount at the end of each month for 12 months so you will have $1000 at the end of 1 yr. The bank w
vitfil [10]

Answer:

$81.13

Explanation:

first we must calculate the effective monthly interest rate:

1.06 = (1 + i)¹²

1.004868 = 1 + i

i = 0.4868%

the future value of this annuity is given, but we need the monthly contribution:

monthly contribution = future value / FV annuity factor

future value = $1,000

FV annuity factor, 0.4868%, 12 periods = 12.32656

monthly contribution = $1,000 / 12.32656 = $81.13

5 0
3 years ago
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