All categories

1 month ago

Use what you have learned about risk and return to complete these sentences.

Business

2 answers:

arsen [3.4K]1 month ago

4 0

Answer:

To reduce risk, investors should research the market and diversify their portfolio.

Interest that builds upon the principal and the previously earned interest is referred to as compound interest

Funds placed in a CD consistently offer a fixed rate of return and bear less risk compared to funds allocated for purchasing a home.

harina [3.8K]1 month ago

4 0

Answer:

To mitigate risk, investors should diversify their portfolio

Interest that accrues on the principal along with the interest already earned is called compound interest

When compared to funds allocated for acquiring a home, money invested in a CD is more liquid

Explanation:

Portfolio diversification is an investor strategy aimed at minimizing the risks associated with investment portfolios by ensuring funds are spread across different asset classes with varying risk levels.

Diversifying a portfolio implies that investments are made in assets exhibiting a negative correlation, meaning they don’t move simultaneously in the same direction with respect to returns.

Compound interest is calculated by adding the interest accumulated during the first investment period to the principal before determining the interest for subsequent periods, and this process continues.

A CD, short for Certificate of Deposit, is a financial vehicle offered by banks and other financial institutions to customers looking to invest their funds and earn interest income. Money placed in a CD is typically tied up for a specified term until maturity.

Investments in real estate usually take longer to realize compared to those in a CD,

and thus, funds invested in a CD are considered more liquid than those placed towards property acquisition.

You might be interested in

A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per un

Free_Kalibri [3773]

Answer:

Unit cost = $23

Explanation:

Given the data:[[@[TAG_12]]][[@[TAG_13]]][[@[TAG_14]]][[@[TAG_15]]][[@[TAG_16]]][[@[TAG_17]]][[@[TAG_18]]][[@[TAG_19]]][[@[TAG_20]]][[@[TAG_21]]][[@[TAG_22]]][[@[TAG_24]]][[@[TAG_25]]][[@[TAG_26]]][[@[TAG_27]]][[@[TAG_28]]][[@[TAG_29]]][[@[TAG_30]]][[@[TAG_31]]][[@[TAG_32]]][[@[TAG_33]]][[@[TAG_34]]][[@[TAG_35]]][[@[TAG_36]]][[@[TAG_37]]][[@[TAG_38]]](Direct materials = $10 per unit

Direct labor = $6 per unit

Variable overhead = $70,000

Units produced = 10,000

Utilizing variable costing, unit production costs encompass direct material, direct labor, and variable overhead costs per unit.

Firstly, we calculate the variable overhead per unit:

[[TAG_59]][[TAG_60]][[TAG_61]][[TAG_62]]Variable overhead per unit = 70,000 / 10,000 = $7[[TAG_63]][[TAG_64]]Now, we compute the total unit cost:[[TAG_65]][[TAG_66]][[TAG_67]][[TAG_68]][[TAG_69]][[TAG_70]]Unit cost = direct material + direct labor + variable overhead per unit[[TAG_71]][[TAG_72]][[TAG_73]]Unit cost = 10 + 6 + 7 = $23[[TAG_74]]

5 0

1 month ago

explain why the percentage of poeple with $300,000 or more increase so substantially across the age groups

harina [3808]

Older individuals benefit in wealth accumulation.

Explanation:

Generally, older adults possess more financial resources because:

1. They typically have longer career spans, which leads to better salary opportunities and job positions.

2. They have had an extended timeframe to save and invest their resources.

Individuals in older age categories typically find it easier to amass wealth during their working years. Conversely, young professionals starting their careers often struggle to gather significant wealth.

8 0

2 months ago

Question Six

harina [3808]

Answer:

The estimated 90% confidence interval for the average depth of all frames in the consignment ranges from a lower boundary of 105.419 mm to an upper boundary of 106.581 mm.

Explanation:

The confidence interval for the mean is calculated as mean +/- margin of error (E)

mean = 106 mm

sample sd = 3.5mm

n is the sample size = 100

degree of freedom = n-1 = 100-1 = 99

confidence level (C) = 90% = 0.9

significance level = 1 - C = 1 - 0.9 = 0.1 = 10%

the critical value (t) for 99 degrees of freedom at a 10% significance level is 1.6602

E = t × sample sd/√n = 1.6602×3.5/√100 = 0.581 mm

Lower limit of mean = mean - E = 106 - 0.581 = 105.419 mm

Upper limit of mean = mean + E = 106 + 0.581 = 106.581 mm

The 90% confidence interval is (105.419 mm, 106.581 mm)

5 0

1 month ago