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4 years ago

Why is a high-quality bond typically considered a lower-risk investment than a stock?

1 answer:

8 0

<span> <span>In investment, the term risk can be defined as the possibility of the investor losing all or part of their capital in a given venture. High quality bonds are considered lower risk because the the investor is promised to receive face value after a certain period unlike stocks that do not carry the same promise. Returns on high quality bonds are also guaranteed in the form of fixed interest rates whereas in stocks, a company may pay dividends but this is not an obligation on their part. Lastly bonds are safer investment as they are less susceptible to abnormal price changes unlike stocks whose prices can easily swing in either direction.</span></span>

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Top salesperson Carl noticed that the new salesperson, Brandon, was struggling to make sales. Carl told Brandon that learning sa

GalinKa [24]

Answer:

The correct answer is A. coaching .

Explanation:

Coaching means instruct, teach, or train. In the sales environment, skills are required that allow a constant level of performance over time, and in the event that you do not have knowledge about a specific market, it is best to receive the training of an expert person. In the example, we see that Carl is a person with great knowledge of the market, and Brandon a beginning seller with many difficulties in closing sales. Your help is important because it allows Brandon to perform better.

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3 years ago

Which speaker is most likely to make high-risk investments?

Alecsey [184]

Answer: Speaker A

Explanation: Just took the quiz

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3 years ago

After 4 years, Aspen earned $510 in simple interest from a CD into which she initially deposited $3000. What was the annual inte

Montano1993 [528]

So, the interest rate will be undefined, we'll name the variable n.
4n(3000) = 510
(The 4 in the equation represents 4 years)
Multiply:
12000n = 510
We'll divide 510 by 12000:
n = 0.0425
The annual interest rate is 4.25%

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3 years ago

Read 2 more answers

What is one benefit of purchasing saving bonds?

Nezavi [6.7K]

Answer:

There are many benefits of purchasing saving bonds:

* They are protected from inflation.

* They have no expenses or fee.

* Amount earned on saving bonds is exempted from all kinds of state taxes.

* They can be purchased with very minimum amount as well, as low as $25.

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3 years ago

Read 2 more answers

Explain where in the U.S. balance of payments an entry would be recorded for each of the following:

aleksandrvk [35]

Answer:

a. This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.

b. This is an imports of merchandise and it will be recorded under current account in the BOP.

c. This is also an import of merchandise and it will be recorded under current in the BOP.

d. This is an exports of merchandise and it will be recorded under current in the BOP.

e. This an outflow of capital and it will be recorded under capital accounts in the BOP.

f. This is a purchase or import of service and it will be recorded under current account in BOP.

g. This is a sale or export of service and it will be recorded under current account in the BOP.

Explanation:

Balance of Payment (BOP) refers to the statement in which every monetary transactions made between residents of a country and the rest of the world during a specific period are recorded.

Balance of payments records the inflows and outflows of capital which monitors under capital account, imports and exports of merchandise and service which are monitor under current account, and financial transactions.

Therefore, we have:

a. A Hong Kong financier buys some U.S. corporate stock.

This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.

b. A U.S. tourist in Paris buys some perfume to take home.

This is an imports of merchandise and it will be recorded under current account in the BOP.

c. A Japanese company sells machinery to a pineapple company in Hawaii.

This is also an import of merchandise and it will be recorded under current in the BOP.

d. U.S. farmers make a gift of food to starving children in Ethiopia

This is an exports of merchandise and it will be recorded under current in the BOP.

e. The U.S. Treasury sells a bond to a Saudi Arabian prince.

This an outflow of capital and it will be recorded under capital accounts in the BOP.

f. A U.S. tourist flies to France on Air France.

This is a purchase or import of service and it will be recorded under current account in BOP.

g. A U.S. company sells insurance to a foreign firm.

This is a sale or export of service and it will be recorded under current account in the BOP.

3 0

3 years ago