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Lynna [10]
3 years ago
15

How do safe investments usually have a lower rate of return than riskier ones?

Business
2 answers:
choli [55]3 years ago
6 0

Answer:

Safe investments generally require less investment money and therefore tend to have a lower rate of return. In contrast, risky investments usually involve a lot of money and can cause a great loss for the investor, for this reason, they need to have a higher rate of return so that the investor feels influenced to invest, even with the high risk.

Explanation:

No investment is risk-free, but the higher the risk, the higher the rate of return and the greater the investor's profit.

In general, safe investments have a lower risk, require little money from the investor and do not have a very high rate of return, because the movement with the money is small and often limited. An example of this type of investment is saving, where the money invested is not moved, there is no risk of losing it.

On the other hand, high-risk investments are characterized by the rapid and constant movement of money invested. This type of investment usually involves large amounts of money and great chances that this money will be lost. For this reason, this type of investment may not be attractive to many people, which allows their rate of return to be high, to encourage the investor to take a risk.

densk [106]3 years ago
3 0

Students should understand that every saving and investment product has different risks and returns. Differences include how readily investors can get their money when they need it, how fast their money will grow, and how safe their money will be.


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The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
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Answer:

1. estimate the quantity of raw materials to be purchased.

2. ending raw materials inventory for the last period.

Explanation:

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The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.

2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.

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2 years ago
Do you prefer to work alone or as a member of a team? Explain.
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Answer:

If you're an introvert, you can say that you generally enjoy working alone, but explain that you can also work well with others, too. For example, “I really enjoy collaborating with a team and brainstorming ideas, but that doesn't mean I can't work independently to get things done.

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3 years ago
EA4.
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Answer:

$1,000

Explanation:

As we know that

Cost of material used = Beginning balance of inventory + purchase made during the month - ending balance of inventory

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