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The practice of making high-risk investments in hopes of a huge return?
Wiki User
∙ 10y ago
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Wiki User
∙ 10y ago
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How is the potential rate of return on investments related to the level of risk?
Higher risk investments have a higher potential return.
What is the difference between return on equity and return on net worth?
Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
Can return exist without risk?
Return can happen with out risk however this is generally the interest you would earn in a savings bank account. Generally, these type of investments are covered by FDIC insurance.
What are the Merits and demerits of promissory notes?
higher liquidity, constant assured return on your investment lower returns compared to other investments
Are high yield investments a type of Ponzi Scam?
"Ponzi scams are scams that promise to return investors with some kind of profit but does not. High yield investments are not always a Ponzi scam, but one should watch out for warning signs."
The accounting rate of return on stockholders investments is measured by?
The accounting rate of return stockholders investments is measured by?
How is the potential rate of return on investments related to the level of risk?
Higher risk investments have a higher potential return.
How is the accounting rate of return on stockholders investments measured?
return on equity
How is an absolute return involved with investments?
An absolute return is involved with investments by the measure of gain or loss that is expressed as a percentage in the invest of a business capitals.
How do risky investments influence businesses?
Risky investments make the company more vulnerable towards the market frictions. If the company is making risky investments - shareholders and debt-holders might require higher rate of return on their capital. Basically, the riskier the investment the more costly it is for the business.
Explain why Net Present Value method is more famous academically while Internal Rate of Return method of evaluating investments is applied by most firms in practice?
What is presesent value
What will happen if the return on investments decreases?
If the return on investments decreases, shareholders and investors will eventually sell their shares as their investment is not utilized efficiently and it will affect the company's over all value.
What is one of the risks of being a stockholder?
Stockolders are not guaranteed a return on their investments.
What is one of the risk of being a stockholder?
Stockolders are not guaranteed a return on their investments.
How does One Smooth Stone deliver Return on Investment to its clients?
how does one smooth stone deliver return on investments to its clients
What effect do low interest rates have on business investment?
The effect that low interest rates have on business investments is a low return. The low return will affect the profits of a business. It will also slow down business investments.
What is generally considered a good use of credit?
To make investments that will earn a return later
