1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
________ refers to all of the methods, policies, and organizational procedures that ensure the safety of the organization's asse
lilavasa [31]

Answer:

The correct answer is d) Controls

The goal of Control in an organization is making sure that the company's procedures meet the required criteria of a particular standard. A company needs to have accounting standards, production standards, and management standards, and it is through control processes that those standards are met.

7 0
3 years ago
Markets can:
solong [7]

Answer:

D

Explanation:

B and C dont make sense A is that you can never run out of things in stock

4 0
3 years ago
Read 2 more answers
After cost overruns of the solar project, $10 million was already spent and unrecoverable. It was going to cost $12 million more
Brrunno [24]

Answer:

a. continue with the project provided that the additional solar electricity is worth more than $10 million.

Explanation:

It is provided that after cost overruns of the project is $10 million, which can never be recovered, thus, it is a kind of sunk cost.

Sunk cost is the cost which is made previously, and now in no manner will affect the decision, as cannot be recovered.

Therefore, such cost is ignored.

Further provided additional cost will be $12 million, therefore, now the society shall make a rational choice whether to continue the project providing solar electricity of $10 million, as in case of amount of solar energy is $32 million or $22 million, then the choice is obvious to accept,

Rational choice will be for solar electricity worth $10 million.

Therefore, correct statement is

a. continue with the project provided that the additional solar electricity is worth more than $10 million.

4 0
3 years ago
Mr. A owned 75% of the voting stock and 85% of the nonvoting stock of Corporation Y. Mr. A transferred property with a fair mark
Lena [83]

Answer:

$0

Explanation:

Since Mr. A already owns 75% of common stock (and 85% of nonvoting stock), the extra 5% will result in a total of 80% (and 90%), that means that he cannot recognize any loss or gain resulting from this transaction. This applies to all stockholders that own at least 80% of a company's stocks and transfer property in exchange for more stocks.

5 0
3 years ago
In three to five sentences, describe the steps you can take to effectively organize your writing.
xz_007 [3.2K]
There are 1 simple step to organize your writing. First, organize your thoughts on a paper and plan out what you want to add. You can do this with a graphic planner or just writing notes down you need. Next, create a rough draft to make sure your sentences flow properly, that you have no grammatical errors or misspellings. Finally, write out your final paper, so it's clean and well written out.
7 0
3 years ago
Other questions:
  • 22. On January 1, 2021, Princess Corporation leased equipment to King Company. The lease term is eight years. The first payment
    5·1 answer
  • _____ determine what sales volume must be reached before the company's total revenue equals total costs and no profits are earne
    7·1 answer
  • Your salmon dish has a food cost of $4.76, and your price includes a markup of 300%. You decide to decrease your percentage mark
    6·1 answer
  • Why do the us government intervene in the economy during the finanacial crisis in 2008
    15·1 answer
  • George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement sa
    6·1 answer
  • Juan was considering purchasing an interest in a tax-exempt bond fund for $100,000 when he discovered that the interest must be
    12·1 answer
  • In an interview, a tough question _____. A. May show the interviewer how you think under pressure b. May be designed to rattle y
    9·2 answers
  • PLZZZZ HELPP FASST
    15·1 answer
  • Select the correct answer
    15·1 answer
  • Why do we need government support?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!