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
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.


You might be interested in
For a branded house strategy, the following is often essential: A. Increased shelf presence in retail store B. One product that
grigory [225]

For a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

<h3>What is branded house strategy?</h3>
  • A Branded House is a marketing approach in which multiple companies' products are sold under one name/branding umbrella.
  • If the master brand/company wants more control over the end product's production, distribution, and cost, this technique is ideal.
  • Apple is an example of a branded house.
  • Apple offers numerous goods, many of which are well-known enough to stand alone as product brands.
  • However, they are all clearly branded Apple and exploit the master brand's visual identity and spirit.
  • A Branded House strategy provides various benefits to businesses that provide different services or products under one brand, including Efficiency - a single marketing plan and brand code cover all offerings.
  • Ease - by keeping all offerings under the same brand, confusion and competition are avoided.

Therefore, for a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

Know more about branded house strategy here:

brainly.com/question/6412726

#SPJ4

7 0
1 year ago
For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could b
hodyreva [135]

Answer: (A) Computer service expenses of production scheduling for operating departments

Explanation:

 The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.

 The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.

 According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:

 1) Fixed

 2) Recurring

Therefore Option (A) is correct answer.          

5 0
3 years ago
Why is cash flow important to government entities? How does an administrator plan for cash flow? What tools are available for th
vodka [1.7K]

Answer:

Cash flow is important to government entities because:

As with non-government entities, cash flow is important to government organizations because it is required for the operations of any organization regardless of whether they are government-owned or not, for-profit or not.

The measurable difference in the cash balance of any organization from one period to the next is referred to as Cashflow. No business or entity can continue operations if they keep taking out or spending more cash than they can make.

An administrator can plan for cash flow using a Cash Flow Planner.

This can take the form of a simple excel spread sheet  with one column showing on one side all the monies that one is expecting to come in (Account Receivables) and an adjacent column showing all the monies one is expecting to pay out (Account payables).

At the bottom of the excel, you can show the bank balance.

There are specialised apps that help perform this function. An example would be Quickbooks, Planware, Cash Flow Planner, etc.

Cheers!

6 0
3 years ago
How can Jude, a high-end automobile dealer, decide whether to grant one of his potential customers credit?
morpeh [17]

Answer:

B.check with a credit and information management company

5 0
3 years ago
Why is a hotel room a perishable product?
Anton [14]

E

Is the correct answer

7 0
3 years ago
Read 2 more answers
Other questions:
  • Problem 11-1 Jain Mart is to depreciate an asset bought for $500,000 using the SOYD method over a life of 8 years. If the deprec
    14·1 answer
  • Illustrate your understanding of how to use the adjusted trial balance to prepare a statement of retained earnings by completing
    7·1 answer
  • Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to
    9·1 answer
  • On 12/31/10, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $17
    9·1 answer
  • A company pays all selling expenses in the month incurred. Budget information includes: Administrative salaries: $50,000; Sales
    7·1 answer
  • Alejandra is Calculating the nondurable goods value for 2017. She is calculating the value by using the quantity of each final n
    10·1 answer
  • Cricket Corp. issued, without consideration, rights allowing stockholders to subscribe for additional shares at an amount greate
    14·1 answer
  • 13. You have started your first job today, and you want to buy a house within 3 years. You are currently saving for the down pay
    15·1 answer
  • An economy is operating with output $200 billion above its natural level, and fiscal policymakers want to close this expansionar
    5·1 answer
  • The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!