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
Ket [755]
2 years ago
11

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

Business
1 answer:
klio [65]2 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.

You might be interested in
What is an incentive?
77julia77 [94]

Answer:

it acts as a stimulus to a market

Explanation:

an incentive is the extra money given to an employee for the constant hard work done,this can therefore act as a stimulus.

I hope this helps

8 0
2 years ago
Hich correlation coefficient is one most likely to find between hours spent studying each week and cumulative gpa among college
8090 [49]

<u>".30"</u> is one most likely to find between hours spent studying each week and cumulative gpa among college students.


The correlation coefficient is a statistical measure that figures the quality of the connection between the relative developments of the two factors. The scope of qualities for the relationship coefficient limited by 1.0 on a flat out esteem premise or between - 1.0 to 1.0. In the event that the relationship coefficient is more prominent than 1.0 or not exactly - 1.0, the connection estimation is inaccurate. A connection of - 1.0 demonstrates an immaculate negative correlation, while a connection of 1.0 demonstrates a flawless positive correlation. A connection of 0.0 shows zero or no connection between the development of the two factors.

3 0
3 years ago
If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne
Stels [109]

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

5 0
3 years ago
Critically discuss if government interventions to alleviate poverty are sustainable over a long period of time
Nostrana [21]

I don’t believe that government interventions are sustainable over a long time.<span>
<span>Government interventions such as social welfares are in reality good policies to aid deprived people sustain themselves for a short period of time. Howeveri in order to entirely eradicate their poverty, they have to ultimately get a decent job to maintain their own living, otherwise, the Government just keep on spending and increases national debt over time.</span></span>

7 0
3 years ago
Javier, a new insurance agent, pays one of his customers to buy his firm's insurance product. Javier explains to the customer th
GaryK [48]

Answer: Bribery.

Explanation:

Bribery is a legal offense which involves giving or demanding for some form of valuables so as to gain favouritism or influence a situation in someone's else favour. Giving or accepting bribes while discharging one's duty as a government official or public office holder is said to be a form of corrupt practices, this could come as a form of gift, money, goods, property, contract award, etc.

Bribery is a crime in which when committed all parties involved are liable to being charged. Bribery harbours other vices such as fraud, cheating, partiality, power abuse, collusion, cartels, etc.

8 0
2 years ago
Other questions:
  • When a tax is placed on the sellers of a product, buyers pay _ and sellers receive _ than they did before the tax?
    14·1 answer
  • Western Company allocates $10.00 overhead to each unit produced. The company uses a plantwide overhead rate with machine hours a
    14·1 answer
  • *NEED HELP ASAP* A borrower may be able to get a lower rate on a loan if he or she offers to the lender a sizeable _______
    5·2 answers
  • Net exports: Group of answer choices will increase if exports of goods decline. will increase if imports of goods rise. in our G
    7·1 answer
  • You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will
    9·1 answer
  • An example of a cost would be _____. <br> profit<br> revenue <br> fire <br> salaries
    7·2 answers
  • Lance contributed investment property worth $640,000, purchased three years ago for $245,000 cash, to Cloud Peak LLC in exchange
    15·1 answer
  • The federal unemployment tax is levied on a.employers and is deducted from employees' earnings. b.employees and employers. c.emp
    5·1 answer
  • Earnings of workers are typically decreased by
    12·1 answer
  • In analyzing the chart, what is the relationship between fees and dollar advanced? What do you think that payday lenders base th
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!