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Sergio039 [100]
2 years ago
9

Which one of the following is true about risk and return?A) Riskier assets will, on average, earn lower returns.B) The reward fo

r bearing risk is known as the standard deviation.C) Based on historical data, there is no reward for bearing risk.D) An increase in the risk of an investment will result in a decreased risk premium.E) In general, the higher the expected return, the higher the risk.
Business
1 answer:
ollegr [7]2 years ago
3 0

Answer:

E) In general, the higher the expected return, the higher the risk.

Explanation:

In order to attract potential investors, investments that bear a higher risk must offer a higher expected return. This is known as the risk-return tradeoff principle. Abiding by that same logic, investments with lower associated risk tend to offer lower expected returns since they are a "safe bet".

Therefore, the answer is E) In general, the higher the expected return, the higher the risk.

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​Andre, Beau, and Caroline share profits and losses of their partnership in a ​:​: ratio respectively. If the net income is ​, c
Brums [2.3K]

Answer: $545,454.55

Explanation:

Caroline's share of the profit would be her sharing ratio over the total ratio time the net income.

= (6 / ( 6 + 2 + 3)) * 1,000,000

= 6/11 * 1,000,000

= $545,454.545

= $545,454.55

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3 years ago
Marcus is considering which college major to choose. In taking a rational approach, Marcus should consider
harkovskaia [24]

Answer:

Science or physics.

Explanation:

You didn't give us the choices

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1 year ago
Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers. a.
larisa86 [58]

Answer:

b. the right to be informed

Explanation:

Consumerism is a movement that aims to protect consumer's interests. The movement promotes truthful packaging, fair trade practices, truthful product guarantees, truthful advertising etc. These attributes will enable consumers to make informed decisions before purchasing products. Based on the above, option b is the correct answer.

7 0
3 years ago
A sneaker manufacturing company targets teenagers. It sells the sneakers to these teenagers at a price which is lower than what
sladkih [1.3K]

Answer:

The correct answer is a. best-cost.

Explanation:

A best-cost strategy means palpable relief to the buyer, and is carried out under a series of characteristics that vary according to the product or service offered. In it, some functions that generate important values are sacrificed in order to offer a quality / service experience, which allows us to differentiate ourselves from the competition and thus be benchmarks in the sector. The statement shows a company that charges the design to the final buyer, which allows them to save costs in this area.

7 0
3 years ago
On February 1, 2017, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar
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Answer:

$72,800

Explanation:

Book value:

= Value of bonds + Unamortized bond premium

= $1,000,000 + $92,800

= $1,092,800

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= 102% of value of bonds

= 102% × $1,000,000

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= Book value -  Paid at redemption

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Therefore, gain should be recognized on this bond retirement will be $72,800.

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3 years ago
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