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
Sloan [31]
3 years ago
12

Explain how to invest in securities markets and set investment objectives such as long-term growth, income, cash, and protection

from inflation.
Business
1 answer:
shtirl [24]3 years ago
8 0

Answer with Explanation:

The investment in securities must include purchases of stock of more than 15 industry firms because diversified investment gives an average rate of return on investments. Hence it would be better to lower the risk of investment by simply investing in more than 15 firms and each of them must be from different industry sector. Nowadays due to coronavirus, it would be better to investing in fintech, IT and Hi-Tech industries will pay much more than low tech industries. Tesla is one of these tech companies whose share price have surged by 390% in past 12 months. It doesn't mean that other industry products don't pay enough. Setting objective includes how much yearly investment must be added to you security portfolio so that the net worth of the portfolio keeps growing. The reinvestment of dividends received, insurance of downside risk, investment on the basis of value at risk, etc. are all the set objectives that are considered while investing and managing security portfolio. If you are not confident with setting objectives then investing via investment institutions would be a another best option which had employed hundreds of CFA's who are working to increase the wealth of their potential clients and it is more likely that you take home a better return on investment as compared to a person who has little knowledge of security investments.

You might be interested in
In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:
dmitriy555 [2]

Answer: Option (c) is correct.

Explanation:

Correct option: Unplanned inventory investment.

Unplanned inventory investment is a component of investment spending. The other component of investment spending is planned inventory investment.

Unplanned inventory investment occurs when actual sales are more or less than the company's expected sales which results in unplanned changes occurred in the inventories.

Hence, in the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of Unplanned inventory investment.

5 0
3 years ago
You are considering investing $65,000 in new equipment. You estimate that the net cash flows will be $18,000 the first year, but
Alina [70]

Answer:

a. The annual capital cost is $9,798

b. The equivalent annual savings is $27,495

c. The decision is wise

Explanation:

a. In order to calculate the annual capital cost (ownership cost) for the equipment we would have to calculate the following formula:

annual capital cost=P(A/P,i,n)-F(A/F,i,n).........

annual capital cost=$65,000(A/P,9%,10)-$5,000(A/F,9%,10)

=$65,000(0.1558)-$5,000(0.0658)

=$10,127-$329

=$9,798

b. In order to calculate the equivalent annual savings (revenues) we would have to calculate the following formula:

equivalent annual savings=A+G(A/G,i,n).........

equivalent annual savings=$18,000+$2,500(A/G,9%,10)

=$18,000+$2,500(3.798)

=$18,000+$9,495

=$27,495

c. The decision is wise becauste the equivalent annual savings are greater than the annual costs of the equipment.

6 0
3 years ago
Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay pe
Crazy boy [7]

Answer:

Check the following calculations that follow the answer

Explanation:

a) Amount of net pay = wages – income tax – FICA tax = 53000 – 7300 – 2775 = $42,925

b) Total Payroll Cost = wages + FICA Taxes + unemployment taxes

= 53000 + 2775 + 280 = $56,055

5 0
3 years ago
Soon-Yi Park’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market
xenn [34]

Answer: Implement a mass marketing campaign

Explanation:

From the question, we are informed that Soon-Yi Park’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel.

The least effective component of a marketing plan for Soon-Yi to take advantage of this opportunity is implementing a mass marketing campaign. Rather, Soon-Yi should use a strategy relating to those in LGBT.

5 0
3 years ago
You have decided that you want to be a millionaire when you retire in 45 years. If you can earn an annual return of 11%, how muc
bagirrra123 [75]

Answer:

If you earn an annual return of 11%, then you need to invest 9,129.89

If you earn an annual return of 5.5%, then you need to invest 89,875.08

Explanation:

We will calculate the first years in order to try to find a pattern. Let x be the initial investment.

1st year. We have our original amount of money plus the 11% of the original amount.

x + 0.11x = 1.11x

2nd year.  We have the amount of money we had the 1st year plus the 11% of that amount.

1.11*x + 1.11*x*(0.11) = 1.11x*(1+0.11) = 1.11*x*(1.11) = (1.11^2)*x

3d year.

(1.11^2)*x + ((1.11^2)*x)*.11 = (1.11^2)*x*(1+0.11) = (1.11^2)*x*(1.11) = (1.11^3)*x

We can already see a pattern and say that, at year n, we will have:

(1.11^n)x

If we want to have 1,000,000 at age 45, then we just have to write the equation:

(1.11^45)=1 000 000

Solving for x we get that: x = 9,129.89

In an analogous way, we can write an equation for the case when the annual return is 5.5, in the following way:

(1.055^45)=1 000 000

Solving for x we get that: x = 89,875.08

5 0
3 years ago
Other questions:
  • A 30-year maturity bond making annual coupon payments with a coupon rate of 8.5% has duration of 12.88 years and convexity of 23
    13·1 answer
  • Which of the following is NOT a type of bank?
    10·2 answers
  • Two examples of generally accepted accounting principles are:
    8·1 answer
  • Are secretary most important employee in a business?
    14·1 answer
  • Webster and Moore paid $148,000, in cash, for equipment three years ago. At the beginning of last year, the company spent $21,00
    8·1 answer
  • Jane, the CEO of Noble Inc. regularly interacts with her employees to give them all the necessary details about the company goal
    12·1 answer
  • Can a company be good at corporate social responsibility but not be sustainability-oriented? Is it possible to focus on sustaina
    9·1 answer
  • Consider a profit-maximizing firm in a competitive industry. Under which of the following situations would the firm choose to pr
    13·1 answer
  • What steps must you perform if you want to see values in the low stock and out of stock boxes on the products and services scree
    11·1 answer
  • When merchandise sold is assumed to be in the order in which the purchases were made, the company is using.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!