Which statements describe the role of risk in making investment decisions?
Risk is an element to consider when investing in stocks.
The higher an investment's risk, the greater its potential return will be.
Explanation:
Every business has its own risk but it differs as a result of the type of business and profit involved, there is a risk in every investment and the higher the risk the greater its potential return
Insurance fraud involves any misuse of insurance policies or applications in order to illegally gain or benefit.
Insurance fraud is usually an attempt to exploit an insurance contract for financial gain. The majority of insurance fraud cases involve exaggerated or false claims.
<em><u>B</u></em><em><u>) is tailored to fit some specific target customers while mass marketing aims at everyone with roughly the same marketing mix. </u></em>
Explanation: Is the distribution policy that maximizes the value of the firm by choosing the optimal level and distributions system for its dividends and stock repurchases). Most firm try to achieve the optimal distribution policy necessary for it to maximize its stock price for guarantee good returns or good profit on its investment.
The computation of the total compound return over the 3 years is shown below:
= (1 + investment percentage earned in first year) × (1 + investment percentage earned in second year) × (1 + investment percentage loss in second year)
