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Andrei [34K]
3 years ago
7

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

Business
1 answer:
Verdich [7]3 years ago
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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You buy a call option and a put option on general electric. both the call option and the put option have the same exercise price
viktelen [127]
This strategy is called a LONG STRADDLE. A long straddle refers to the combination of buying a put and a call option both of which have the same strike price and expiration date. A trader that uses long straddle technique is trying to protect his interest in regard to the volatility of the item he has bought.
3 0
3 years ago
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponenti
earnstyle [38]

Answer:

casual                  

Explanation:

Causal analysis, also termed causal analysis, is the study of the links between causes and effects. In order to identify causal link, it is necessary to identify differences in the variables that are believed to trigger the shift in another variables and then calculate the differences in the other.

This form of study is very complicated and the investigator could never be entirely confident that there are hardly any other variables affecting the causal link, particularly when working with the perceptions and motives of individuals. There are also psychological factors far deeper than even the participant might not be conscious of.

6 0
3 years ago
Knappert Corporation makes one product and has provided the following information:
Alex_Xolod [135]

Answer:

$113.0

Explanation:

A. Cost of material (M):

M=3*5.00\\M=\$15.00\ per\ unit

B. Cost of Labor (L):

L=24*2.80\\L=\$67.20\ per\ unit

C. Manufacturing overhead (O):

O=11*2.80\\O=\$30.80\ per\ unit

D. Selling and administrative expense (S):

Those should not be included in the product cost.

Total cost per unit is:

U = M+L+O= 15.00+67.20+30.80\\U=\$113.00

The unit product cost is closest to: $113.00.

3 0
3 years ago
When evacuating the premises during an active shooter incident, your responsibilities to others include: Warning individuals not
kykrilka [37]
It include warning individuals not to enter the area where the active shooter may be

In real life, those who haven't do any necessary training for this kind of emergency situation can only be a hindrance for the actual help enforcement. The best thing we can do is to warn other people not to enter the dangerous area

8 0
3 years ago
Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year (before adjustment), and bad debt expense i
kobusy [5.1K]

Answer:

$34,500.00

Explanation:

Currents balance on the allowance for doubtful debts account is a debit balance of $2500.00. ( negative balance)

Sales volume $ 800,000.

Bad debt expense is 4 %. i.e 4/100= 0.04

Bad debt expense =0.04 x 800,000=32,000.

Add debt balance =$ 32,000.00 + $ 2,500.00

       =$34,500.00

7 0
3 years ago
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