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Bumek [7]
3 years ago
10

People who might need to retrieve part or all of their investment relatively soon, such as the elderly, are often advised to inv

est a higher percentage of their money in bonds, and thus a lower percentage in stocks, than people who can leave the investment untouched for decades. We know, however, that bonds typically have a lower rate of return than stocks. Why would people be advised to invest in assets that give lower average rates of return
Business
2 answers:
jeyben [28]3 years ago
7 0

Answer: C. While stocks have a higher rate of return in the long run, they are much more volatile (riskier) in the short run. As such, they have a higher probability of having less than the original value of the investment for people who might need to withdraw the investment in the short run.

Explanation:

As stated, people who need to withdraw part or all of their investments in a short time frame such as the elderly are advised to invest in bonds as opposed to stock.

To properly benefit from Stock ownership, one has to be willing to leave it for a long period of time because stocks are more volatile in the short run. If a person needs to withdraw in a short horizon and goes in on Stock, they may lose some of their money due to Capital losses if the Stock reduces in value.

Bonds on the other hand will give a steady income so that even if you wish to withdraw in a short time, you can with the probability of no losses in that short time frame.

Misha Larkins [42]3 years ago
7 0

Answer:

The payment from bond is guaranteed, while the value of stock fluctuates.

Explanation:

Stock is a risky asset and the risk is compensated by a higher rate of return in the long run. However, the stock being a risky asset can lose its value that generally fluctuates.

However, bond is not categorized as a risky asset and its payment is guaranteed.

Therefore, it is advisable for the elderly to invest a higher percentage of their money in bonds, and thus a lower percentage in stocks.

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Pamper Me Salon Inc.’s general ledger at April 30, 2017, included the following: Cash $5,000, Supplies $500, Equipment $24,000,
seraphim [82]

The beginning balances should be entered in the general ledger as of April 30, 2017, as

follows:

A. Beg. Bal

Supplies

(Beg. Bal 500]

Equipment,

[Beg.Bal___ 24000]

‘Accounts Payable

72100 Beg. Bal

Notes Payable

110000 Beg. Bal

neared Service Revenue

1000 Beg. Bal

Common Stock

‘5000 Beg. Bal

Retained Earnings

11400 Beg. Bal

D.  

Prepare the trial balance as follows:

PM Salonine.

Trial Balance

As on May 31, 2017

Account Titles Debit ($) Credit ($)

Cash 5100

Supplies 1200

Equipment 24000

‘Accounts Payable 1200

Unearned Service Revenue 1200

Notes Payable 10000

Common Stock 5000

Retained Earnings 11400

Service Revenue 6000

Salaries Expense 2400

Rent Expense 1000

Advertising Expense 500

Utilities Expense 400

Interest Expense 50

Income Tax Expense 150

Total 34800-34800

Learn more about balances here:- brainly.com/question/24914390

#SPJ9

6 0
1 year ago
1- The Lo Tech Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant
Alex
<span>1- The company’s cost of equity is 12.34%. The answer is letter c.
2- The bank’s cost of preferred stock is 6.10%. The answer is letter a.
3- The pretax cost of debt is 7.60%. The answer is letter c.
4- The Mullineaux Corporation WACC is 10.02%. The answer is letter b.
5- The company's WACC is 10.53%. The answer is letter c.
6- The company’s WACC is 8.20%. The answer is letter a.

</span>
4 0
3 years ago
Identify the outcomes when a manager views supply chain operations as a collection of processes rather than a collection of depa
RoseWind [281]

Answer: Managers and workers can view operational activities from a customer's perspective

Operation Managers can better ensure that the operational capabilities they create are consistent with the firm's strategy

Explanation:

Supply chain operations refers to the structures, systems, and processes that are put in place for the execution of the flow of goods and services from the supplier to the customer.

The outcomes when a manager views supply chain operations as a collection of processes rather than a collection of departments or functions include:

• Managers and workers can view operational activities from a customer's perspective.

• Operation Managers can better ensure that the operational capabilities they create are consistent with the firm's strategy.

7 0
2 years ago
Nick lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is pr
OlgaM077 [116]

Answer:

Yes.

Explanation:

Market rate of exchange of jello for pie:

= Price of a piece of apple pie ÷ Price of jello

= $3.75 ÷ $1.25

= 3.00

At his current consumption point, Nick's marginal rate of substitution (MRS) of jello for pie = 3

Since MRS = Px/Py, hence, at this point of consumption bundle he is having a maximum level of utility.

Therefore, there is no need to change his consumption bundle because he is already at his maximum level.

4 0
3 years ago
Breadmakers, inc. produces and supplies fresh sandwich breads to various sandwich businesses. breadmakers has recently decided t
yarga [219]
<span>the answer is Direct distribution Direct distribution is a channel of distribution where the producer or manufacturer ensures his or her goods and services reaches the consumer without any intermediary like wholesalers or retailers, in this case all the middle players in the supply chain are eliminated. By opening its own stores for selling sandwiches to consumers, Breadmakers, inc. will be doing a direct distribution (direct supply to consumers)</span>
5 0
3 years ago
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