Answer:
Arrange the investments in order from the highest risk and return potential to the lowest risk and return potential:
A. property
B. bonds
C. starting a business
D. mutual funds
Solution:
C. starting a business
A. property
D. mutual funds
B. bonds
Explanation:
Investments are the exchanges of income during one period for assets that are expected to earn income in future periods. It is the act of committing capital now in order to obtain future earnings. The risk and return calibration depends on one's personal circumstances and risk appetite.
Some investments offer higher returns with great growth potentials and higher risks while others offer lower returns with lower risks.
Starting a business has the highest risk and return potential. The risk is that you may not realise any return. However, if you are successful in the business, you can get the highest return ever.
Property investments either by building new property, buying built property, or investing in property investment fund may also yield so much returns but the risks are higher than other investments in this class. There is no guarantee that prices of property will not fall so dramatically that you sustain big losses. There is always need to insure your property against disasters like fire.
Mutual funds are professionally managed funds whereby money is pooled from different investors in order to buy stocks, bonds, etc. with long-term horizon. It has higher risk profile than investing in bonds as an individual, because you could recoup some returns in bonds as interests are paid periodically.
Bonds are debt securities to a government or business with the promise of repayment and period interests. They are generally risk-free investments with lower returns because of the guaranteed repayment.
Answer:
Option (D) is correct.
Explanation:
Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.
Asymmetric information will result in two problems are as follows:
(i) Adverse selection
(ii) Moral hazard
Answer:
$234.87
Explanation:
Pinky's new balance will be the opening balance plus additional. Deposits minus withdrawals. The new balance will be the starting balance plus cash-in minus the cash-out.
Starting balance =$137.66
Cash-in: $146.24
Cash-out : check $23.62 + (AT) of $25.41 =$49.03
New balance = $137.66 + $146.24 - $49.03
=$283.9- 49.03
=$234.8
Answer: residual value (or salvage value)
Explanation:
Answer:
<u>Sustainable</u>
Explanation:
Sustainable development in simple terms refers to the development which can be sustained or carried forward for a long period of time.
It refers to satisfying and meeting the needs of the current generation without jeopardizing the needs and resource availability for the future generations.
Economic development refers to the rise in per capita income while sustainable development incorporates economic as well as human development.
Such development aims at judicious usage of resources , equitable distribution of resources and reduction in wastage.
