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
Xelga [282]
3 years ago
5

One common advantage of a long-term investment is

Business
2 answers:
Alexxx [7]3 years ago
6 0

Answer: higher return

Explanation:

edg 2020/2021

sladkih [1.3K]3 years ago
5 0

Answer:

higher return.

Explanation:

When it comes to investing, time is is a good friend. Long-term investments are more profitable compared to short-term investments.

Time overcomes market volatility. Naturally, markets move up and down. On some occasions, the draw-downs may be big and rapid, which may erode short-term gains. Staying in the market longer allows the market to correct its self and return to profitability.

By taking long term investments, the investor enjoys the benefits of compound interests. The investment earns interests on interests earned, which increases the investor's wealth rapidly.

You might be interested in
You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your
pickupchik [31]

Answer:

The answer is 27,408.71

Explanation:

Solution

Recall that:

You were left with a trust fund of =$100,00

Interest rate = 6.5%

Money with drawled = 4 installments

Now,

The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.

Now,

100, 00 = X (1 - (1.065)^-4/.065/1.065

We now solve for X

Thus

X =7,408.71

By applying or using a financial calculator

We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"

So,

N = 4

I/Y = 6.5

PV = -100,000

FV = 0

CPT PMT

The payments are known to to be 27,408.71

Note : Kindly find an attached copy of the Financial calculator below

3 0
3 years ago
Read 2 more answers
There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is
beks73 [17]

Answer:

The statement is true.

Explanation:

The investor aversion to risk must be compensated with an increased return to make it more feasible.

If all bonds' return were the same then, investor will not invest on high risk bonds.

Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.

6 0
3 years ago
Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will mai
Yanka [14]

Answer:

The correct answer is 23.33 and 11.67.

Explanation:

According to the scenario, the given data are as follows:

ROE = 20%

Plowback ratio = 0.30

Earning per share = $2

Rate of return = 12%

So, we can calculate the price and P/E ratio by using following formula:

First we calculate the growth rate of the company.

So, Growth rate (g) = Plowback ratio × ROE

By putting the value we get,

Growth rate = 0.30 × 0.20 = 6%

Now we calculate the price,

So, Price = Earning × ( 1 - Plowback ratio) ÷ ( Return rate - Growth rate)

= $2 × ( 1 - 0.30) ÷ ( 0.12 - 0.06)

= 1.4 ÷ 0.06

= 23.33

And P/E ratio = Price ÷ earning per share

= 23.33 ÷ 2

= 11.67

4 0
3 years ago
Which one of the following account groups normally has a credit​ balance? A. equity and assets B. assets and liabilities C. asse
andrezito [222]

Answer:

a) Assets and expenses

Explanation:

Credit balance can be regarded as amount that is been owed by a business to a customer. This occur when the payment by the customer to the business exceed the current invoice stipulates. credit balances can be located or found at right side of a subsidiary ledger account, it can be found on right side of a general ledger account. credit balance that is contained on billing statement of the customers can be regarded as amount that card issuer is owing the customer.

It should be noted that one if account groups that is normally has a credit​ balance is Assets and expenses

4 0
3 years ago
During the meeting Malcolm constantly reminds the rest of the team that he is in charge of this project, and it must be carried
KengaRu [80]

Answer:

The correct answer is b) Coercive

Explanation:

The term Coercive refers to the use of force or power to influence someone, sometimes, through punishments. The government uses coercive power through the army to regulate a nation according to the norms and policies of the country. Malcolm is using coercive to make sure and show to the team that the project is handling by him.

6 0
3 years ago
Read 2 more answers
Other questions:
  • A company reports the following beginning Inventory and two purchases for the month of January. On January 26, the company sells
    6·1 answer
  • Which of the following factors will make the demand for a product relatively elastic? rev: 05_14_2018 Multiple Choice Purchases
    8·1 answer
  • In an origin contract, when does title pass to the buyer?
    11·1 answer
  • Which type of investment typically charges the investor the lowest fees
    6·1 answer
  • Consider a bank that has the following balance sheet: Liabiiiies Reserves $200 Deposits $960 Loans $800 Equity $40 Suppose some
    8·1 answer
  • Suppose a new standardized test is given to 99 randomly selected​ third-grade students in New Jersey. The sample average score U
    8·1 answer
  • Joanna received $68,400 compensation from her employer, the value of her stock in ABC company appreciated by $8,600 during the y
    14·1 answer
  • According to the marketing concept, while customer satisfaction is the main goal, it is also important that a business achieve i
    13·1 answer
  • 4. Matilda and Rene are also trying to forecast what their federal and state income taxes will
    9·1 answer
  • Telfer, Inc. reported net income of $2.7 million in 2020. Depreciation for the year was $162,300, accounts receivable decreased
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!