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3 years ago

Assess the trade-offs that investors face when making investment decisions, and provide one example of such a trade-off.

Business

1 answer:

polet [3.4K]3 years ago

7 0

A common trade-off that investors face when making investment decisions is the risk-return trade-off.

A trade-off simply means the situational decision where an economic entity loses one quantity in order to gain something else.

A common trade-off that investors face when making investment decisions is the risk-return trade-off. It should be noted that higher risks are usually associated with more probability of higher return. Also, a lower risk has a greater probability of lower return but it's safer.

In this case, investors are usually faced with making a decision of whether to go for a safer investment or to go for one with more risk that will yield more returns.

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Brendan and sean combined their love of baseball with a business venture. they purchased a small cart and began selling memorabi

EastWind [94]

Answer:

The correct answer is C

Explanation:

Environmental Circumstance is the term which is defined as the any circumstances which is forming the grounds of any alleged violation or liability under the Law or Permit of Environmental.

Under this situation, both of them started a business, which performed well in its 1st year, but in the second year the business does not perform well due to the horrible record of team and poor economic conditions. Therefore, this condition will be explained as the environmental circumstances are tough to control as well as are dynamic in nature.

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3 years ago

Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any ho

denis23 [38]

Answer:

It should be greater than $36

Explanation:

The opportunity cost of working is the amount of money sacrificed or could have earned if the individual was not working. In this case, Claire has decided to go with her friend which means that the opportunity cost of not working is less than the benefits receives from going out. Because she is not working it means that the opportunity cost of working is more than 36 dollars, which is the income she could have earned in 3 hours.

7 0

4 years ago

Read 2 more answers

Your company, a small start-up corporation, buys raw materials from Regina Fabrics on credit. Because her company has had severa

Goryan [66]

Answer: See explanation

Explanation:

I believe that the main thing here that can favor my company is if there's documentation for every process involved with my dealings with Regina Fabrics.

This could have been solved if she didn't reject the cash that was offered to her company after two months, so there should be a formal documents that shows that she rejected the cash which should be acknowledged and signed by her. Also, the monthly payments received by her should be documented as well.

With regards to the above, if there is a formal documentation in place, then I won't have to pay as the guaranty but if this isn't in place, then I may have to pay since there won't be evidences against her.

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3 years ago

list 4 stages of development impacting the airline industry and briefly describe how each has impacted the future direction of t

PolarNik [594]

The 4 stages of development that impacted the Airline Industry are:-

1. Regulation: Strict government control of fares, routes, and entry into markets Regulation resulted from tight ownership control of fares, limited competition on chosen routes, a small market served, a low frequency of city connections, high fares, government bailouts for air carriers, and incentives to increase airline profitability

2. Liberalization: reducing governmental control, increasing bilateral agreements, expanding into new markets, diversifying into new goods, and specialising in specialised markets.

3. Deregulation results in less airfare, improved service, and no government regulation of the market.

4. Re-regulation: Prevent predatory pricing by regulating prices; prohibiting strikes under the Railway Labor Act; updating the air traffic control system to reduce delays; and encouraging development, consolidation, and concentration.

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2 years ago

If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,

GrogVix [38]

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

inflation rate US = (1 + 0.03)⁵ = 1.159274
inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

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4 years ago