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MA_775_DIABLO [31]
3 years ago
9

John, 25, just started contributing to his employer's 401(k) plan and started an ira account. he is choosing to invest only in b

onds and secure investments instead of high-risk stocks. is john pursuing a wise investment strategy?
Business
1 answer:
Marianna [84]3 years ago
7 0

Answer:

John is mistaken since the best possible long term investment for a young individual is stocks. Stocks provide the highest potential returns. But they must be considered a long term investment. The price of stocks show an upward  slope, but their price varies every single day. The stocks themselves might lose some value during relatively long periods of time (e.g. months or even a couple of years), but on the long run there is no other investment that yields similar returns.

John has at least 40 years before retiring, and that is a long time, and the potential earnings of stocks is huge. Even if the stock market plummets right before John decides to retire, his stock portfolio will probably have increased so much that a major loss will not make a big difference. And the stock market always rebounds, so his earnings will increase again.

On the other hand, bonds tend to pay very little interest and John will need to contribute a lot of money if he plans to retire with a plan that only include bonds.

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The United Nations Human Development Report gives the following data for real GDP per person in​ 2014: China,​ $12,547; Russia,​
Leviafan [203]

Answer:

B. between China and Russia or between Canada and the United​ States, because household​ production, the underground​ economy, leisure​ hours, and the environment are similar in each pair

Explanation:

The standard of living can be easily compared​ ______.     A. between China and Canada because they have a similar land size   B. between China and Russia or between Canada and the United​ States, because household​ production, the underground​ economy, leisure​ hours, and the environment are similar in each pair   C. among none of the four countries because they are too different   D. between Russia and the United States because they are both super powers   E. among all four countries because real GDP per person includes a reliable measure of​ income, household​ production, the underground​ economy, leisure​ hours, and the environment

Real Per capita GDP measures the standard of living of the people in a country. The higher the Real Per capita GDP, the higher the standard of living

Real Per capita GDP = Real GDP / population  

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

some items are not perfectly measured by GDP. They include

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Because GDP does not measure underground economy (illegal activities) , leisure , it would be difficult to compare either pair of countries

 

3 0
3 years ago
what is the present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5? assume th
yKpoI14uk [10]

The present value of a deferred perpetuity is $1,938.89.

What is present value?
The present value of a prospective sum of money or cash flow stream given a specified return rate is known as its present value (PV). The present value of future cash flows is reduced by the discount rate, and the higher coupon rate, the lower the present value of future cash flows. The key to correctly valuing future cash flows, whether they are earnings or debt obligations, is determining the appropriate discount rate. The concept of present value states that a quantity of funds today is worth greater than the same amount in the long term. In other words, money gained in the long term is not as valuable as money received today.

The present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5 is $1,938.89. This can be calculated by taking the present value of an ordinary annuity formula, which is PV = A / (1 + r)^n, and adding 5 to n. This gives the equation PV = A / (1 + r)^(n + 5), which can be simplified to PV = A / (1 + r)^n * (1 + r)^5. Thus, the present value is $141 / (1 + 0.06)^10 * (1 + 0.06)^5, which equals $1,938.89.

To learn more about present value
brainly.com/question/20813161
#SPJ4

3 0
1 year ago
The designated market value:a. is always the middle value of replacement cost, net realizable value, and net realizable value le
eduard

Answer:

a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.

Explanation:

As we know that inventory will be recorded at cost or market value whichever is lower. But in the given case, the replacement cost would be recorded at higher values and lesser values. Higher values represent the Net realizable value whereas the lesser values represent the net realizable value less than the normal profit margin.

And if the replacement cost lies in this range than it represents the designated market value.  

Hence, option a is correct.

4 0
3 years ago
What factors caused american business to develop into a mixed economic system rather than some other type of economic system?
Ksivusya [100]

The economic system in the USA is rooted in the Laissez-Faire capitalism of Adam Smith. However, the real-world setting in the US is not as Laissez-Faire as Smith would have liked because the government greatly participates as more than umpire and rule maker. The government take part in American Business by way of resource or product markets, interest, and especially taxes which results in making the American business progressed into a mixed economy, showing both elements of capitalism and socialism.

Other factors such as <span>foreign competition, the Great Depression, World Wars I and II, and the increasing age of population have also contributed to the mixed economic system.</span>

3 0
3 years ago
Read 2 more answers
Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors i
FromTheMoon [43]

Answer:

D : Cultural relativism

Explanation:

Cultural relativism is an idea that an action should be viewed in the context of the socio-cultural environment in question. If child labor is permitted in Country X, it implies that rival companies and competitors who use child labor will experience cheaper production cost and unless the multinational company does same, it may face the need to pul out of the market.

4 0
3 years ago
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