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Return on investment is directly related to risk of investment--the riskier an investment is, the more you have to pay people for making it.
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What was one outcome of the stock markets great crash in 1929 that lasted for more than 50 years?
Ordinary people were afraid to invest in the Stock Market.
What is the difference between discount rate and coupon rate?
For this answer we have to know the six categories of premioum:a. Inflation premium(more risk): high inflation means tha investors will require a higher return in order to invest at a certain project.b. Maturity premium: the longer the duration of a project, the higher the return that investors will require.c. Liquidity premium: the excess return that investors will require in order to invest their capital in a less desirable project on a secondary market.d. Exchange rate risk premium: the excess return that investors will require in order to invest their capital in a foreign financial assets that has volatile exchange rate.e. default risk premium: .... in order to invest in a more (??) project to default companyf. Real rate of interests
What are work incentives?
Private property (and the possibility of getting more) gives people the incentive to work, save, and invest.
What is stimulus spending?
buying from companys so the companys are worth more money, so people invest into these companys so the companys can grow.
What managerial actions can influence the value of the firm in the context of the shareholders wealth maximization model?
The risk and return trade-off or the attitude of management towards risk will play a major role in determining the value of a firm. This for example will form a basis of whether to invest in government bonds where the risk of default is low and return equally expected will be low, this is the opposite of a decision to invest in shares where the risk is high but the expected return can equally be high. In terms of SWM, the value of the firm will be reflected in the market value of a company's shares.
What should you invest 100 dollars in?
It depends on your risk appetite.If you are high risk investor invest in the stock marketIf you are a medium risk investor invest $50 in the stock market and $50 in bank CDsIf you are a low risk investor invest in bank CDs
Why do people invest in low return funds even though their money will depreciate more than they will profit?
people investing in low return fund so as to minimize risk especially risk associated with depreciate of currency value
How did buying on margin help reinforce help the bull market?
It allowed more people to invest in the Stock Market.
Why do people invest money in stocks bonds and mutual funds?
To get more money. You invest because you are seeking a return.
Why do people invest money in stocks bond mutual funds?
To get more money. You invest because you are seeking a return.
Does Coca-Cola invest in new ventures?
it can invest in new ventures because to reduce the risk,by diversification
What is asset transformation?
Assets transformation: if we want invest 1 billion $ and invest to one persons we gain many risk if in future lender man diead or go to abroad we lost all the amounts and other choice if we invest 1 billion to many like 100 people in this situation we divesfy risk this is calld assets transformation.
Why do people risk in bounty worlds?
They risk because the more they risk, the better drops they get.
How do you begin with stock trading?
Read about the companies you wish to invest in before you invest. Stay away from high risk companies.
Is Microsoft corp a good stock to invest in?
Investing in the stock marketinvolves risk, if you do ot understand this reisk then do not invest your money there.
Why do people invest?
I invest in cryptocu rrencies using Netcoins Exchange. These digital currencies will soon be the future of money.
Are mobile phones more of a risk to young people than to adults?
Younger people are at more risk; as the use mobile phones more frequently.
