Answer:
The correct answer is c. risk averse
.
Explanation:
Risk aversion is the attitude of rejection that an investor experiences in the face of financial risk, specifically in the face of the possibility of suffering losses in the value of their assets. The degree of risk aversion determines the profile of the investor (conservative, medium, risky) and should be the starting point for choosing an investment product. For example, a person with high risk aversion (conservative profile) will tend to choose products with lower expected yields, but more stable. On the contrary, a risky investor will be more willing to suffer eventual losses in exchange for the possibility of obtaining superior benefits.
An emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development. An emerging industry typically consists of just a few companies and is often centered around new technology.
Answer:
3.05%
Explanation:
According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.
Mathematically,
(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1
Here,
r2,0 is the rate of interest for 2 year treasury security from today
r1,0 is the rate of the interest for 1 year treasury security from today
r1,1 is the rate of the interest for 2 year treasury security from Year 1
By Putting Values, we have:
(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1
(1 + r2,0)^2 = 1.06184
By taking square-root on both sides, we have:
(1 + r2,0) = 1.0305
r2,0 = 3.05%
Answer:
Personally, as an investor I would be concerned but I would be willing to wait for 3-5 more years to help the CEO diversify the markets.
Explanation:
A company that makes a consistent loss is never a good buy for an investor. However, Amazon has done a couple of things over the last two decades that can give investors some confidence.
For one, the company has grown in revenue and the number of products they offer every year since it's inception. What began as an online book seller now sells everything, from facial creams to make up to electronics.
Amazon has also maintained a first-mover advantage and almost has a monopoly on the e-commerce business in the United States.
With such a strong position and a $140 billion in revenues, the company is almost too big to fail since their debt is very little. With such firepower, the company can further transform and diversity to become profitable and formidable.
Answer:
B) $12,825
Explanation:
In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.
The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.
To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.
Now, we take our worst case scenario for amount of units and price:
4,500 units x $2.85 = $12,825
$12,825 is the total dollar amount for the worst case scenario of this product.
