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Bogdan [553]
3 years ago
12

Scene: A savvy investor has a mix of stocks and bonds in their investment portfolio. Why would it be a good idea to mix stocks a

nd bonds in your investment portfolio?
Business
1 answer:
Komok [63]3 years ago
7 0

Answer:

Explanation:

It wouldn't now, unless you are very wealthy. Interest rates are very low and you would have to go into the junk bond market to get any kind of decent return. But Junk Bonds are or can be very unstable and you get a high return for a very chancy situation.

I think I know what the question wants you to understand. You need something that will provide with income. You just don't want to deal with bonds. There are stocks around that pay dividends; they are very conservative and if they go down, that will be the least of your problems.

You can then devote your resources to capital gains or pure stocks: no interest payments, but the stock itself goes up. There is a whole different tax system for capital gains.

You should also get some gold or silver as insurance.

Since you have asked about stocks and bonds, I have not said anything about cryptos. That's an option, but you have to be very knowledgeable because those things can be an investment nightmare.

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Regarding increasing productivity, factor mobility is
inn [45]
I believe the correct answer from the choices listed above is option C. Regarding increasing productivity, factor mobility is  i<span>mportant in that it helps to reallocate resources in a dynamic economy. Hope this answers the question. Have a nice day.</span>
4 0
3 years ago
You find a certain stock that had returns of 14 percent, −11 percent, 21 percent, and 22 percent for four of the last five years
sp2606 [1]

Answer and Explanation:

The calculations of the stock return for the missing year is shown below:

a. Let us assume the fifth year stock return be x

As we know that  

Average rate of return = Total returns ÷ number of years

0.12 = (0.1 - 0.11 + 0.21 + 0.22 + x) ÷ 5

So after solving this, the x is 14%

b. Now the standard deviation of the stock return is presented in the excel spreadsheet

The standard deviation is 13.40%

4 0
3 years ago
Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5.
Wewaii [24]

Answer:

Explanation:

The lunch plate industry in Oahu is a perfectly competitive industry.  

This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.  

The industry is currently in long-run equilibrium and has the price level at $5.

As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.  

As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.  

So the long-run equilibrium will be reestablished at a lower price than earlier.

7 0
3 years ago
Shrink-Wrap Agreements. TracFone Wireless, Inc., sells phones and wireless service. The phones are sold for less than their cost
Alekssandra [29.7K]

Answer: Yes they are

Explanation:

This is a Shrink-Wrap Agreement which means that in order to use a product, one has to accept the conditions that come with it. The term gets its name from the agreement printed on the shrink-wrap (plastic wrap) of a product. Tearing it off and using that product implies that you agree to the terms printed.

Bequator Corp., in buying the phones agreed with TracFone Wireless Inc's condition that the buyer will <em>"not to tamper with or alter the software"</em>. Bequator however went ahead and tampered with the phones they bought such that the phones could now be used on other networks.

This is a clear violation of the condition that TracFone sold it to them under which means that Bequator Corp. is quite liable for breach of contract.

3 0
3 years ago
The most important determinant of consumption and saving is the
Anna11 [10]
The answer is D.Level of bank credit.
5 0
3 years ago
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