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LekaFEV [45]
3 years ago
8

Duration measures Group of answer choices weighted-average time until a bond's half-life. weighted-average time until cash flow

payment. the time required to make excessive profit from the investment. weighted-average time until a bond's half-life and the time required to make excessive profit from the investment. weighted-average time until cash flow payment and the time required to make excessive profit from the investment.
Business
1 answer:
omeli [17]3 years ago
5 0

Answer:

weighted average time until cash flow payment.

Explanation:

Duration is simply known as a market value based model. It was set up so as to be able to manage interest rate risk. It is also defined as the effective measure of the interest rate risk of an asset.

Duration is commonly known as the weighted average time to maturity of a loan (fixed-income instrument) using the relative PV's of the CF's as weights. It is used commonly in bond investment and analysis application. it can be applied to individual fixed income instruments, a liability, or an entire portfolio.

features of duration includes: duration and maturity, duration & yield and duration & coupon.

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I think cause you know yourself better than everyone else and you know what you can and can’t do and everyone should be able to have their own opinions on things :))
4 0
3 years ago
Read 2 more answers
Suppose that commodity prices across the economy begin to fall and consumers and firms begin to expect a lower rate of future in
butalik [34]

Answer:

B) The SRAS curve will shift to the right, and the short‐run Phillips curve will shift downward.

Explanation:

When the price of key inputs decreases, then the short-run aggregate supply (SRAS) curve shifts to the right, generally resulting in higher production levels (higher supply) due to lower production costs. On the other hand, when the price of key inputs increases, then the SRAS curve shifts to the left.

When inflation expectations decrease or SRAS curve shifts to the right, the short-run Phillips curve shifts to the left.

8 0
4 years ago
arrange the investments in order from the highest risk and return potential to the lowest risk and return potential
dimulka [17.4K]

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.

5 0
3 years ago
"A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less mon
Anika [276]

Answer:

Recession.

Explanation:

Recession is a time of slow economic activity.Businesses decrease production,unemployment rises and many consumers have less to spend.

5 0
3 years ago
A company purchased a tract of land on which it expects to build a production plant in approximately five years. During the five
adelina 88 [10]

Answer:

A long-term investment.

Explanation:

The land should be classified as a long-term investment.

This is an asset owned by the company, that it intends to keep for more than a year. This asset is usually recorded on the asset side of a company's balance sheet.

It is the opposite of short-term investment which is sold within one year.  

7 0
3 years ago
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