All categories

2 years ago

Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?

2 answers:

8 0

It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>

Alekssandra [29.7K]2 years ago

8 0

Yes because a treasury bond is backed by the government

You might be interested in

A company has sales of $752,800 and cost of goods sold of $301,800. its gross profit equals:

Elena-2011 [213]

Revenue = $752,800
Cost of goods sold = $301,800

To solve for the gross profit:
Gross profit = revenue - cost of goods sold
Gross profit = $752,800 - $301,800
Gross profit = $451,000

The gross profit shows the profits a company has after taking their costs to make the product and subtract them from the sales they had.

7 0

3 years ago

Show your work and explain in a full sentence how 4 2-6 is equivalent to 3 8-6.

klemol [59]

Answer:

$4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}$

Explanation:

Given

$4\frac{2}{6}$ and $3\frac{8}{6}$

Required

Show that they are equivalent

To do this, we simply convert both fractions to either decimal or improper fraction

Using improper fraction

$4\frac{2}{6} = \frac{6 * 4 + 2}{6}$

$4\frac{2}{6} = \frac{24 + 2}{6}$

$4\frac{2}{6} = \frac{26}{6}$

$3\frac{8}{6} = \frac{6 *3+8}{6}$

$3\frac{8}{6} = \frac{18+8}{6}$

$3\frac{8}{6} = \frac{26}{6}$

After converting both to improper fraction, we have:

$4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}$

<em>Hence, both are equivalent</em>

3 0

2 years ago

Ring Technology has a capital budget of $850,000, it wants to maintain a target capital structure of 35% debt and 65% equity, an

Bad White [126]

Answer:

b. $ 952,500

Explanation:

The computation of the amount of the net income for earning to meet out the requirement is shown below:

Dividend = Net income - Target Equity ratio × Total capital budget

$400,000 = Net income - 0.65 × $850,000

$400,000 = Net income - $552,500

So, the net income is

= $400,000 + $552,500

= $952,500

Hence the Net income is $952,500

Therefore the correct option is b. $952,500

3 0

3 years ago

You are the head of the Health Information Management department at Grady Health System. An FBI agent has arrived at your office

svp [43]

I would initially apologize for the violations that are found in the hospital. Although this might not necessarily be my jurisdiction, I would still feel bad if the hospital did not operate as it should.

I would then proceed to name some examples of HIPAA violations. This would be:

Snooping on Healthcare Records
Failure to Perform an Organization-Wide Risk Analysis.
Failure to Manage Security Risks / Lack of a Risk Management Process
Insufficient ePHI Access Controls

4 0

2 years ago

Which of the following is a correct explanation for why the aggregate demand curve slopes downward? A. As the price level decre

Tems11 [23]

Answer:

C. As the price level decreasesdecreases, the real value of cash balances increasesincreases, and total expenditures riserise.

Explanation:

The aggregate demand curve is a curve that shows all the output demanded at different price levels in an economy.

The aggregate demand curve in downward sloping. This is according to the law of demand which says, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Therefore, when prices fall, the real value of cash balances increases, total expenditures rises and quantity demanded rises.

When prices fall, export increases and net export rises.

I hope my answer helps you

5 0

2 years ago