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3 years ago

Why might someone choose to diversify their investments?

Business

1 answer:

Feliz [49]3 years ago

7 0

Answer:

When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.

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Union Local School District has a bond outstanding with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity.

Kryger [21]

Answer:

The price of the bond is $4,632.16

Explanation:

Coupon payment = $5,000 x 2.8% = $140 /2 = $70 semiannually

Number of period = n = 16 years x 2 period per year = 32 period

Yield to maturity = 3.4% annually = 3.4% / 2 = 1.7% semiannually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$70 x [ ( 1 - ( 1 + 1.7% )^-32 ) / 1.7% ] + [ $5,000 / ( 1 + 1.7% )^32 ]

Price of the Bond = $70 x [ ( 1 - ( 1.017 )^-32 ) / 0.017 ] + [ $1,000 / ( 1.017 )^32 ]

Price of the Bond = $1,716.72 + $2,915.41

Price of the Bond = $4,632.13

7 0

3 years ago

In recent years debit cards have become popular. Debit cards allow the holder of the card to pay a merchant for gods and service

enyata [817]

Answer:

Debit cards are assigned to checking accounts, and since they have become more popular, the amount of currency in the economy has decreased while the amount of checking account deposits has increased.

Explanation:

Actual currency (bills and coins) and checking accounts are part of the M1 category of the money supply, since both are considered completely liquid.

3 0

3 years ago

A property is sold for $350,000. The buyer has paid $12,000 as earnest money and is obtaining a 70% loan. Based on the informati

Zolol [24]

Answer:

$93,000

Explanation:

Data provided in the question:

selling cost of the property = $350,000

Earnest money paid = $12,000

Percentage of loan obtained = 70%

Now,

The amount of loan obtained = 70% of $350,000

= $245,000

Therefore,

Amount to be paid by self

= selling cost of the property - amount of loan obtained

= $350,000 - $245,000

= $105,000

Thus,

Additional cash the buyer will have to bring to the closing day

= Amount to be paid by self - Earnest money paid

= $105,000 - $12,000

= $93,000

7 0

3 years ago

Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance,

allochka39001 [22]

Answer:

Depreciation: $4,000.00

Variable costs : $914.81

Explanation:

The value of the car when new = $19,860.00

Values after two years =$11,860.00

Accumulated depreciation for two years

= $19,860.00 - $11,860.00

=$8,000.00

Assuming straight depreciation method, depreciation each of the two years

=$8,000.00/2

=$4,000.00

Variable costs are the cost that changes with usages. In this case, variable costs are gas and oil, lube, and miscellaneous.

Variable costs = $845.96 + $68.85

Variable costs = $914.81

7 0

3 years ago

Read 2 more answers

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a p

Svetlanka [38]

Answer:

B. $34,000; -$1,000

Explanation:

Accounting profit equals total revenue minus explicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 = $34,000.

Economic profit equals total revenue minus the sum of both explicit and implicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 - $35,000 = -$1,000

4 0

3 years ago