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2 years ago

If Pharrell invests his money in stocks and high-yield bonds, which phrase

Business

1 answer:

Dmitriy789 [7]2 years ago

3 0

The phrase that describes his investment strategy is "Risky and Long term investor".

Basically, an investment strategy refers to set of rules, behaviors or procedures which are designed to guide an investor's on the selection of an investment portfolio.

Majority of investors fall between lower risk investor, moderate risk investor and higher risk investor.

The portfolio that he invests in ( stocks and high-yield bonds) is an example of high risk portfolio

In conclusion, the phrase that describes his investment strategy is "Risky and Long term investor"

Read more about investment strategy:

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Your total cash income is $80,000. You pay $8,000 in taxes and $60,000 in other expenses. Your savings ratio is

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$12,000 if i am correct

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2 years ago

What are mutual funds? Explain the associated risks.

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Answer:

A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.

Risks:

The level of risk in a mutual fund depends on what it invests in. Stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return. These kinds of funds also tend to have a greater risk of a larger drop in value—yet the greater the risk, the greater the reward (or potential for higher returns).

Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.

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2 years ago

In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was

Cerrena [4.2K]

Answer:

Real income has increased by $720 in terms of dollar and 2% in percentage

Explanation:

The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.

Real income = Nominal income × CPI Base year/ CPI in current year

Real Income = 32000 × 120/125

=$30,720

Change Real income

Change in real income ($) = 30,720 - 30,000

= $ 720

Change in real income (%) = (720/30,000) × 100

= 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

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3 years ago

When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional informa

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Answer:

$227,500

Explanation:

The computation of the total amount of cash paid is shown below:

Cash paid for insurance premium = Prepaid Insurance at end of the year + Prepaid Insurance recognized - Prepaid Insurance at the beginning of the year

= $61,250 + $218,750 - $52,500

= $227,500

We simply applied the above formula so that the correct amount of cash paid could come with respect to the insurance premium

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3 years ago

Jessica’s Office Supply, Inc., had 300 calculators on hand at January 1, 2017, costing $16 each. Purchases and sales of calculat

otez555 [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Jessica’s Office Supply, Inc., had 300 calculators on hand on January 1, 2017, costing $16 each.

Purchases and sales of calculators during January were as follows:

January 12: 200 units for $25

J 14: 150 for $17

J 29: 100 for $18

J 30: 150 for $30

According to a physical count, 200 calculators were on hand on January 31, 2017.

FIFO:

Inventory= 150*30 + 50*18= $5,400

COGS= 300*16 + 200*25 + 150*17 + 50*18= $13,250

LIFO:

Inventory= 200*16= $3,200

COGS= 150*30 + 100*18 + 150*17 + 200*25 + 100*16= 15,450

Average cost method:

Average cost= (16 + 25 + 17 + 18 + 30)/5= 21.2

Inventory= 21.2*200= $4,240

COGS= 21.2* 700= $14,840

8 0

3 years ago