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3 years ago

How do margin trades magnify both the upside potential and the downside risk of an investment position?

Business

1 answer:

klio [65]3 years ago

4 0

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.

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Larry Marder explains that the company may change what its focus is from year to year. For example, he mentions that if Todd McF

NemiM [27]

The given excerpt describes maintaining strategic control step of the strategic management process.

Option A

Explanation:

A Specialized form of management power and differing from other forms of government control (particularly from operational control) regarding the requirement to deal with instability and uncertainty at different points in the controlling process is a method that organizations are used to regulate the creation and exercise of strategic plans.

The goal of strategic control is not to address the issue: "Have we done the right strategic decisions some time ago? Yet "How good do we do now and how good do we do, to which accurate information is provided, in the immediate future?" "The aim is not to illustrate past mistakes but to recognize the appropriate changes to lead the organization in the right direction.

So, in terms of the actually desired objectives and not against expectations or strategies set at some point in history, that decision must be made.

8 0

3 years ago

On their birthdays employees at a large company are permitted to take a 60-minute answer

Dvinal [7]

Answer:

Full question: On their birthdays, employees at a large company are permitted to take a 60-minute lunch break instead of the usual 30 minutes. Data were obtained from 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday. The company wishes to investigate whether these data provide convincing evidence that the mean time is greater than 60 minutes. Of the following, which information would NOT be expected to be a part of the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance?

Answer: Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.

Explanation:

From the given question let us recall the following statements:

Employees at a large company are permitted to take a 60-minute Lunch break instead of the 30 minutes.

Data was gotten from = 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday

Given that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.

The company tries to investigate the data to know that the mean is greater than 60 minutes

the next step is to find the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance

Therefore,

Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.

Or

The P-value> 0.05

The mean time is not greater than 60 minutes

6 0

3 years ago

Howard Weiss, Inc,. is considering building a sensitive new radiation scanning device. His managers believe that there is a prob

SpyIntel [72]

Answer:

Consider the following information

Probability of ATR coming up with a competitive product is 0.35

If ATR does not come up with a competitive product and H adds an assembly line, the profit is $60,000

If it adds an assembly line and ATR adds the product, the profit is $20,000

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

A) Expected value for the add assembly line option:

The company would get a profit of $60,000 if ATR does not come up with a competitive product. If ATR comes up with a competitive product and H adds an assembly line, the profit is $20,000.

Probability of not coming up with a product is 0.65 (1-0.35)

Calculate the value if it does not come up with a new product line and H adds an assembly line as follows:

Value if it does not come up with a new product = 0.65 x $60,000

= $39,000

Calculate the value if it comes up with a new product line and H adds an assembly line as follows:

Value if it does come up with a new product = 0.35 x $20, 000 = $7,000

Calculate the expected value as follows:

Expected value = S39000 + $7000

Expected value =$46,000

Expected value for build new plant option:

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

Calculate the value if H adds a new assembly but ATR does not come up with a competitive product as follows:

Value if it does not come up with a new product = 0.65 x $600000

= $390, 000

Calculate the value if ATR does not enter the market:

Value if it does not compete in market = 0.35 x -$120000 = -$42, 000

Calculate the expected value as follows:

Expected value= $390,000 - $42,000

Expected value =$348,000

The expected value of building a plant is more than the expected value of adding product line. Therefore, the best alternative is to build the plant.

B) Calculation of expected value of perfect information (EVPI):

EVPI = 0.65 x $600,000 + 0.35 x $120,000

EVPI = $390,000 + $42,000

EVPI =$432,000

Calculation of value of return:

Value of return = Value of perfect information - Maximum EMV

Value of return =$432,000 - 348,000

Value of return =$84,000

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4 years ago

If an organization wants to ensure the demand for services is accommodated, and builds in the ability to provision or de-provisi

LenaWriter [7]

Answer:

scalability

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question this company has employed the concept of scalability. Like mentioned in the question Scalability is the ability to handle a growing amount of work by adding resources to the process or system.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0

4 years ago

Financial markets and channel to . They also channel money from individuals who want to for the future to those who need cash to

Monica [59]

Answer:

financial intermediaries, saving, real investment, save, mutual funds, ETF, commodity market, shares, stock market, banks, CFO, liquids

Explanation:

The Question is incomplete. Here Is the complete Question.

Fill in the blanks in the following passage by choosing most appropriate word from the list: CFO, save, financial intermediaries, stock market, saving, real investment, bonds, commodity markets, mutual funds, shares, liquids, ETFs, banks. each term should be used only once.

Financial market and ________ channel______ to_____ . They also channel money from individuals who want to_________ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example,______ , such as the Vanguard Index fund, and ______, such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the_______ of public companies are because they are traded in huge volumes on the______ . ________ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the______ of a company that is contemplating an issue of debt can look at the yields on existing______ to gauge how much interest the company will need to pay.

7 0

3 years ago