Suppose you have $30,000 invested in the stock market and your banker comes to you and tries to get you to move that money into the bank's certificates of deposit (CDs). He explains that the CDs are 100 percent government insured and that you are taking unnecessary risks by being in the stock market. How would you respond?
What will be an ideal response?
The usual response is that bank CDs typically will offer a very low rate of return because of their low level of risk. Even if students do not know the relationship between yields on CDs and historical returns on stocks, they should recognize that because of the risk differences the CDs must have a lower expected return. So, if the investor in the question is willing to trade off some safety in order to have the chance to earn larger returns, the stock market is the correct investment
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Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Employees and the Product Categories classes?
A. Each employee can manage only one product category. B. Each product category has one manager. C. Each product category can have no managers or multiple managers. D. Each employee must be assigned to manage at least one product category.
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________
A) new product development B) acquisition C) joint venture D) licensing contract E) divestment
An investor presumed to have significant influence owns between 20% and 50% of another company's voting stock.
Answer the following statement true (T) or false (F)
The Fair Labor Standards Act would concern which of the following?
a. Working hours for children employed picking strawberries. b. Minimum hourly wage for a factory worker. c. Overtime pay for managers. d. Attorney fees.