Explain the relationship between risk, the expected rate of return and the actual rate of return
What will be an ideal response?
Answer: The higher the risk, real or perceived, of an investment the higher the expected rate of return. The higher the actual risk of an investment, the greater the probability that the actual rate of return will vary significantly from the expected rate of return.
You might also like to view...
Which of the following applies to the U.S. dollar orientation approach to the translation of foreign operations?
a. It requires an enterprise to account for foreign operations as if those operations actually occurred in U.S. dollars. b. It recognizes that the foreign operations occurred in a foreign currency and that those operations may not affect U.S. dollars. c. Foreign currency denominated assets, liabilities, revenues, and expenses are assumed to be measured in the foreign currency but are translated to U.S. dollars for reporting purposes. d. The effects of changing exchange rates are not reported in income until the net assets are exchanged.
In the workplace, many French people are motivated by competition and the desire to emulate fellow workers.
Answer the following statement true (T) or false (F)
Luke Matthews is the supply chain manager for a large plastics manufacturing company. He is responsible for procuring a wide variety of raw materials to be utilized in the manufacturing process of their plastic products. As part of an annual quality control and expense analysis, Luke is reviewing the prices charged by the raw materials suppliers and also seeking bids from competing suppliers to determine whether any savings could be realized. Luke is rewarded by the company with bonuses when he is able to reduce expenses associated with the raw materials as this could lead to higher profit margins on the products they manufacture. Luke knows that saving a few cents can make a dramatic difference since they manufacture thousands of products at their state-of-the-art facility in Indiana.
What type of analysis do you believe Luke Matthews can perform utilizing the data related to the prices charged by their current and prospective raw materials suppliers? A. Cost analysis B. Sales analysis C. Advertising analysis D. Engagement analysis
Merit pay can be given in the form of lump-sum payments or as increments to the base pay.
Answer the following statement true (T) or false (F)