Investors face various choices regarding what they can invest in, and the choices carry varying amounts of risk. For example, stock prices are much more volatile than bond prices.

What is the typical reason why investors would choose to put their money into an investment with higher risk rather than one with lower risk?
- They want to signal their courage to other investors and scare them away.
- Assuming enough risk in a portfolio qualifies investors for a large government tax credit.
- Riskier investments typically have higher returns.
- Riskier investments are insured by the FDIC.
- They are irrational or are thrill‑seekers.

Answers

Answer 1

Answer:

Riskier investments typically have higher returns.

Explanation:

Although investors choose investments for many different reasons, most investors are seeking to earn a return. Ideally, they would like to earn a high return while exposing themselves to little risk, but what typically happens is that companies offering investments with higher risk know that they have to compensate investors for assuming that risk, or else they will not attract sufficient investment. Thus, higher‑risk investments typically offer a higher return, whereas companies offering lower‑risk investments know that they can offer a lower return and still attact investment. For example, a small company in a competitive, fast‑changing industry will typically offer to pay a higher interest rate for its corporate bonds than a large company in a stable industry.

Also, advertising using risque outfits seem to be more aimed at consumers than investors. Advertising for investors is typically rather boring, featuring graphs and numbers. Of course, one may find that the most interesting models of all are economic models. According to the risk-return tradeoff theory, higher risk is associated with greater probability of higher return and lower risk associated with a greater probability of lower return. The trade-off which the investor faces between risk and return while considering investment decision is called risk return trade-off.


Related Questions

Leo is always so worried that something bad is about to happen that he can't stay focused at school. A therapist might best diagnose Leo with

Answers

If he is always worried that something bad is about to happen. A therapist might best diagnose Leo with: generalized anxiety disorder.

What is generalized anxiety disorder?

Generalized anxiety disorder can be defined as a type of disorder in which a person begins to have fear of the unknown or begins to have a negative thought which can tend to create fears in them.

A person with this type of disorder will tend to always have anxiety about things because he or she felt that something bad might likely happen.

Inconclusion  a therapist might best diagnose Leo with: generalized anxiety disorder.

Learn more about  generalized anxiety disorder here:https://brainly.com/question/7434259

The transition to high school is a challenge for students in part because of exposure to: less freedom to select academic subjects a more impersonal social climate a less compartmentalized curriculum less academic tracking

Answers

Going from high school to college is a challenge to students because there is less academic tracking.

Why is the transition a challenge?

In college, there is more emphasis on a person taking responsibility for their academic study.

This means that the academic progress of a person will not be tracked as much by educators such that the student's attention will be called to areas they are failing. The student will have to figure things out for themselves.

Find out more on the transition from high school to college at https://brainly.com/question/22454484.

According to the tenth amendment, the powers of blank are limited to only those specifically listed in the constitution.

Answers

Answer:

federal government/United States government

Explanation:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

your friend tells you she is having a very hard time getting her 3--year-old toddler to pick up his toys after he's done playing with them. how would you encourage and reinforce the child's behavior in such a way that he starts picking up his toys after he's finished playing with them? Briefly explain using one learning theory. Write 500 words

Answers

Answer:

You could tell her to turn the clean-up into a game. By turning it into a game, the child will relate cleaning to fun, which will make them more likely to do it. This works because kids enjoy fun things. To really enforce it, you could help them clean the first few times, and look as if you are enjoying it. When the child sees the fun you are having, they are likely to also have fun. Children also respond well to positive reinforcement, so if you praise them when they clean-up, they are more likely to do it more often. Another way you could encourage them is through reverse-phycology. If you make it seem fun, but then tell them they aren't needed in the process of the clean-up, the child is very likely to want to do it. Children, especially at that age, are very rebellious. (This is 147 words, if you use this as a base, you can totally make it 500 words)

why are skilled human resources called an important infrastructure of development? write four any four reasons​

Answers

Answer:

To generate employment opportunities by solving the problems of unemployment. To mobilize other human resources for overall human development. To help in the formulation and execution of national plans and policies. To utilize the available means and resources effectively for the development of the nation.

Explanation:

What are three factors of credit unions?

Answers

Answer:

installment credit, revolving credit, and open credit.

factors that may lead to an increased number of learners abusing substance in schools

Answers

Answer:

drugs

Explanation:

in most cases learners have been using drugs which leads the to drop out of schools

Explanation:

here are some of the factors which

may lead to an increased number of learners abusing substance in schools:

1. negative peer pressure

2. curiosity

3. poor self esteem

What is an example of a role you receive at birth?

brother
stepbrother
stepsister
mother

Answers

Answer:

Brother

Explanation:

Because you cannot be born and instantly become a mother, and you cannot be born and become a step-sibling instantly because if you did you would be considered a half-sibling. Leaving the last answer to be a brother.

ECONOMICS

In which situation does the national debt decrease?

A. The federal government has a balanced budget.

B. The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit

C. The federal government hwd a surplus in the budget

D. The federal government has an increase in the federal deficit from the previous fiscal year

Answers

Answer:

To reduce the debt, the country could raise taxes and/or cut spending. These are two of the tools of contractionary fiscal policy, and either tactic could slow economic growth.

Explanation:

When the federal government has a decrease in the national debt from the previous fiscal year, it implies a situation where the national debt decreases.

How does the government reduce the national debt?

There are several strategies used, one of the most common being the issuance of debt in the form of bonds so that the government can raise funds, and may adopt a policy of repurchasing the bonds if necessary, such as the "Quantitative Easing" policy in the US.

Therefore, in order to reduce the national debt, the government must stimulate the economy and identify strategies for raising money.

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#SPJ2

In Spectacula, sanitation engineers are being replaced with garbage robots, which have fewer negative effects and many more significant benefits. However, the labor cost efficiency of garbage robots has driven down the price of collecting garbage so significantly that sanitation engineers can no longer compete. After six months, everybody has switched to the cheaper and better garbage robots.

Assume that Spectacula consumes the same quantity of collecting garbage now as they did six months ago. Please select the choice that best describes the short‑run effects of this industrial change on Spectacula's GDP and its standard of living.
a. GDP and standard of living both increase.
b. There is not enough information to answer the question.
c. GDP decreases and standard of living increases.
d. GDP increases and standard of living decreases.
e. GDP and standard of living both decrease.

Answers

Answer:

c. GDP decreases and standard of living increases.

Explanation:

GDP is a measure of how much an economy produces. As we see here, this is a very rough measure of societal well‑being. To calculate GDP, we essentially take the price of everything sold in the economy and multiply it by the quantity sold. Then, we add everything up into a single GDP figure.

In this example, sanitation engineers are being replaced by garbage robots, a lower‑cost and improved version of the same thing. Since GDP is reliant on price and garbage robots are less expensive, GDP will necessarily decrease.

The citizens of Spectacula, however, can now enjoy the improvements of the better product. Furthermore, the lower cost of the product means they can spend the savings on other things they enjoy, like yoga balls or hunting rifles. This change represents an increase in standard of living.

This example should serve as a good reminder that GDP only approximates the standard of living, the thing economists really care about, and an approximation is only useful if its limitations are understood.

3. In your opinion, have we finally reached a point where all people are truly being given equal rights? Who
might still be missing out, and what more needs to be done in order to ensure that everyone receives equal
access to all of their rights? Explain

Answers

Analyzing the social, political and economic context of societies, it is clear that there is still a disparity between social equity around the world.

What is social equity?

It corresponds to social justice, that is, the application of the same rights and duties to any citizen, regardless of individual characteristics or belonging to a group.

Therefore, to implement social equity in the world, it is essential to strengthen public policies and government incentives that promote rights to education, security, work and other opportunities for all citizens.

Find out more about social equity here:

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Which of the statements clearly demonstrates that total factor productivity is increasing? Assume the aggregate production function is upward sloping and exhibits diminishing returns.

Real GDP per worker grows at the same rate as human capital per worker.

Physical capital per capita, human capital per capita, and real GDP per capita remain constant.

The size of the labor force falls due to emigration which leads to a decrease in real GDP and human capital per worker. Real GDP per worker remains unchanged and physical capital per worker increases.

Physical capital per worker and human capital per worker decrease, but real GDP per worker remains unchanged.

Answers

Answer:

Physical capital per worker and human capital per worker decrease, but real GDP per worker remains unchanged.

Explanation:

Total factor productivity, or technological progress, is attributed to changes in output per worker after accounting for changes in physical and human capital per worker. Total factor productivity rises if human capital and physical capital remain unchanged but GDP per worker rises. Similarly, if physical and human capital per worker fall but real GDP per worker remains constant, total factor productivity must have increased. Otherwise, a reduction in both would have led to a reduction in real GDP per worker.

If all factors of production remain constant and GDP does not change, total factor productivity must be unchanging as well.

If real GDP per worker rises at the same rate as human capital per worker, total factor productivity must be unchanging.

The scenario with emigration has countervailing forces since physical capital per worker increases while human capital per worker has fallen so that it is impossible to tell whether the stability of real GDP per worker is due to increases in total factor productivity.

Government debt in the United States can be categorized a number of different ways. For each debt definition, please indicate all of the scenarios which match that type of debt.
1. The national debt includes Treasury bonds bought by
- the government of China.
- a citizen of Germany.
- First National Bank of Dallas.
- the Social Security Administration.
- a little old lady in Peoria.

2. The public debt includes Treasury bonds bought by
- First National Bank of Dallas.
- the government of China.
- a citizen of Germany.
- a little old lady in Peoria.
- the Social Security Administration.

3. Internally held debt includes bonds owned by
- the Social Security Administration.
- First National Bank of Dallas.
- the government of China.
- a citizen of Germany.
- a little old lady in Peoria.

4. Externally held debt includes bonds owned by
- the Social Security Administration.
- First National Bank of Dallas.
- the government of China.
- a citizen of Germany.
- a little old lady in Peoria.

Answers

Answer:

1. The national debt includes Treasury bonds bought by

✓ the government of China.

✓ a citizen of Germany.

✓ First National Bank of Dallas.

✓ the Social Security Administration.

✓ a little old lady in Peoria.

2. The public debt includes Treasury bonds bought by

✓ First National Bank of Dallas.

✓ the government of China.

✓ a citizen of Germany.

✓ a little old lady in Peoria.

✗ the Social Security Administration.

3. Internally held debt includes bonds owned by

✗ the Social Security Administration.

✓ First National Bank of Dallas.

✗ the government of China.

✗ a citizen of Germany.

✓ a little old lady in Peoria.

4. Externally held debt includes bonds owned by

✗ the Social Security Administration.

✗ First National Bank of Dallas.

✓ the government of China.

✓ a citizen of Germany.

✗ a little old lady in Peoria.

Explanation:

The national debt is everything the U.S. government owes, so all of these bonds are part of the national debt.

The public debt is everything the U.S. government owes to anyone besides a U.S. government agency. So, the bonds bought by the Social Security Administration are not part of the public debt, but everything else is. The public debt can be divided into the part owed to U.S. citizens and firms and the part owed to anyone outside the United States.

The internally held debt includes bonds bought by U.S. firms (the First National Bank of Dallas) and citizens (the little old lady in Peoria). The bonds bought by the Social Security Administration are not part of the internally held debt because they are not part of the public debt.

The externally held debt is the part owned by foreigners, whether firms, individuals (the citizen of Germany), or governments (the government of China).

What good is often produced in and imported from Brazil?

- rice
- coffee
- chocolate
- oranges​

Answers

Answer:

Coffee.

Explanation:

Brazil is the largest producer of coffee.

ANSWER ALL PLS I GIVE BRAINLIEST
In the blank at the left, write the letter of the choice that best completes the statement or answers
the question.
7 Points
___ 1. To avoid the concentration of power, the states divided government functions between the
_?_.
A. people and the governor
B. people and legislature
C. governor and the president
D. governor and the legislature
Continue on next page.
___ 2. Under most state constitutions, which government branch was most powerful?
A. the judicial branch
B. the legislative branch
C. the executive branch
D. none
___ 3. Which of these functions could the national government not perform under the Articles of
Confederation?
A. conduct foreign affairs
B. impose taxes
C. maintain armed forces
D. issue currency
___ 4. How many states had to approve the Articles of Confederation?
A. 13
B. 9
C. 11
D. 10
___ 5. What area did the ordinance passed in 1787 create?
A. Mississippi River valley
B. Appalachia
C. Northwest Territory
D. Ohio River valley
___ 6. When could a territory apply for statehood?
A. when it abolished slavery
B. when it elected a governor
C. when it wrote a constitution
D. when its population reached 60,000
___ 7. How did Robert Morris propose to pay off the national debt left over from fighting the
Revolutionary War?
A. 5 percent state sales tax
B. 5 percent import tax
C. 5 percent national income tax
D. 10 percent inflation tax

Answers

Answer:

Explanation:

1. D

2. B

3.B

4.A

5. C

6. D

7. B


_D__ 1. To avoid the concentration of power, the states divided government functions between the
A. people and the governor
B. people and legislature
C. governor and the president
D. governor and the legislature
Continue on next page.
_B__ 2. Under most state constitutions, which government branch was most powerful?
A. the judicial branch
B. the legislative branch
C. the executive branch
D. none
__B_ 3. Which of these functions could the national government not perform under the Articles of
Confederation?
A. conduct foreign affairs
B. impose taxes
C. maintain armed forces
D. issue currency
__A_ 4. How many states had to approve the Articles of Confederation?
A. 13
B. 9
C. 11
D. 10
__C_ 5. What area did the ordinance passed in 1787 create?
A. Mississippi River valley
B. Appalachia
C. Northwest Territory
D. Ohio River valley
_D__ 6. When could a territory apply for statehood?
A. when it abolished slavery
B. when it elected a governor
C. when it wrote a constitution
D. when its population reached 60,000
_B__ 7. How did Robert Morris propose to pay off the national debt left over from fighting the
Revolutionary War?
A. 5 percent state sales tax
B. 5 percent import tax
C. 5 percent national income tax
D. 10 percent inflation tax


I believe those are the correct answers

What was South American‘s influence on the World Cup?

Answers

Answer:

South America's influence on the world cup is that most popular countries in the world cup are in south America (Argentina,Brazil, Uruguay) Also a big portion of viewers of the world cup are from south America.

Question 1
Which was NOT a reason for the start of World War II?
a. failure of appeasement
b. failure of the League of Nations
C. Germany invaded Poland
d. strong economies throughout the world

PLEASE REPLY!!!!

Answers

This is NOT a reason for the start of World War II, which erupted in 1939 and lasted till 1945: d. strong economies throughout the world.

What were the causes of World War II?

The numerous causes of World War II included:

Worldwide economic depressionFailure of appeasementRise of FascismNazi ideologyIncreased militarism and nationalism in Germany and JapanFailure of the League of Nations.

One cannot agree that strong economies throughout the world helped to fuel the Second World War.

Thus, strong economies cannot be blamed for the start of World War II.

Learn more about the Second World War at https://brainly.com/question/1307652


In what ways does 'Hundy
cause negative impact in nation's economy? Give reasons

Answers

Hundy results in less productive investments, encourage tax evasion and negatively affect governance.

"What does 'religion' mean in sociology?" from a sociological perspective

Answers

Religion from a Sociological Perspective. Religion refers to the set of ideas, attitudes, and practices that are associated with holy or spiritual matters. Religion, according to social theorist Émile Durkheim, is a "unified system of ideas and acts relevant to sacred things" (1915).

Religion serves a variety of purposes in society. These include (a) providing life meaning and purpose, (b) supporting social unity and stability, (c) acting as a social control agency, (d) fostering physical and psychological well-being, and (e) inspiring individuals to fight for good social change.

Religion is another example of a cultural universal, as it exists in some form or another in all communities. Sociologists can use functionalism, conflict theory, and interactionism to better comprehend religion.

Elections are life-blood of democracies.
Discuss.



Answers

Engaging in elections is the only way that a democracy can survive which makes the above statement factual.

How do elections aid democracy?

Democracy is based on the basic notion that the citizens of a nation should get a say in how their country is run by deciding their own leaders.

The only way citizens can be able to decide who will lead them, is by holding elections. Without elections therefore, there can be no democracy because the people would be unable to decide who would lead them.

Find out more on democracy at https://brainly.com/question/3710021.

If you were the sixth member of this team, what kinds of communication might you enact to help relieve the tension of the group

Answers

One of the best ways to relieve the tension of a group in conflict is through dialogue and compromise.

What is Communication?

This refers to the interaction between two or more people where message is sent, understood and feedback is received.

Hence, it is worthy to note that conflict resolution is important to avoid full-scale conflict and this can be done through dialogue and compromise.

Please note that your question is incomplete so I gave you a general overview to get a better understanding of the concept.

Read more about conflict resolution here:
https://brainly.com/question/24769299

Who is credited with bringing the first cattle to America during the 1500s?

Answers

Answer:

if this helps

Explanation:

The first cattle in the Americas were brought to the Caribbean island of Hispaniola, from the Canary Islands, by Christopher Columbus on his second voyage across the Atlantic in 1493, and Spanish colonists continued to import cattle until ∼1512 (13).

The Mayan people practiced a blank type of government
a. democracy
b. city-state
type of government.
c. theocracy
d. bureaucracy

Answers

c. Theocracy

Explanation:

The Mayans developed a hierarchical government ruled by kings and priests.

Theocracy is defined as a system of government in which priests rule in the name of God or a god.

Read the section "Advantages And Disadvantages."

Which sentence from this section shows WHY using credit can have
disadvantages?


People must decide if the advantages outweigh the disadvantages.

Credit can help people buy assets, which are goods or services that keep or increase their value over time.

Interest adds up over time, and the debt becomes difficult to pay back.

Borrowers are able to purchase something that is of value to them.

Answers

The most likely answer is Interest adds up over time, and the debt becomes difficult to pay back. Option C

This is because credit has to do with borrowing of money to pay back with interest to either buy assets or to get goods or services.

how technology and social media platforms influenced self-disclosure in your relationships

Answers

Individuals can self-disclose on social media by posting personal content in posts or by revealing information on their personal profiles. While posting is a common activity, updating one's profile is not.

There seems to be a paradox between goods and money. Consider
the following four scenarios.
Scenario #1) The food and clothing you have suddenly doubled?
Scenario #2) The food and clothing EVERYONE has suddenly doubled?
Scenario #3) The money you have doubles suddenly?
Scenario #4) The money EVERYONE has suddenly doubled (assume there is no
change in national output)?
For each of the following scenarios, briefly identify if you would be better off or
not. Next, explain the difference in your answers to scenarios #2 and #4. Why are
you better off in one and not the other?

Answers

The responses to the paradox scenarios given above are:

Scenario #1: I'd be better off.Scenario #2: I'd still be better offScenario #3: I'd be better offScenario #4: I will NOT  be better off.

What is the explanation for why one is better off in 2 than in 4?

Scenario 4 represents a general increase in money available to everyone.

Now this seems like a good thing but if there is no corresponding increase in National Output, the only thing that can result from such a scenario is:

Inflation; andLoss in the value of money.

This is because everyone suddenly can buy more, but the products and services produced remained the same. Hence there will be serious inflation.

At the end of the day, everyone is back to square one. In scenario 2 however, the increase in spending power is in relation to others.

While the spending power of others remained the same, mine increased hence the advantage.

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Advantages of living in big cities ​

Answers

Answer:

You will probably live closer to your job and closer to other places that will be more convienent than living in a rural area.

Explanation:

5. How long is a term in the Senate?
6. What does the Senate do?

Answers

Answer:

A term in the senate term is 6 years. The senate Senators, along with members of the House of Representatives, propose, and vote on federal legislation  Senators provide advice and consent on executive nominations and treaties and conduct oversight of all branches of the federal government. (some of that is from wikipedia but i did put it in my own words)

Which of the following would not be a fossil?

A dinosaur footprint

An ancient bird nest mold

a fly stuck in tar a year ago

A mammoth stuck in ice

Answers

Answer:

fly stuck in tar would be the correct answer because fossils take long periods of time to form and the fly was only in the tar for a year

The fly because it’s new

Brainliest To Whoever gets it right!!!!

Which parts of your body are
important when you want to send a positive message?
O Eyes
O Hands
O Earth
O All of the above

Answers

I think it’s Eyes…………….z
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