How do margin trades magnify both the upside potential and the downside risk of an investment position?

Answers

Answer 1

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.


Related Questions

Which expense category will most likely be changed to allow money for the purchase of a car?
O savings
groceries
Outilities
o entertainment

Answers

entertainment! for sure. you dont need to go to the movies but you need food lol

It is likely that the savings category will be changed to allow money for the purchase of a car.

What is saving?

Saving refers to the act of setting aside a portion of income or resources for future use. It is a critical aspect of personal finance as it allows individuals to plan for their long-term financial goals and provides a safety net in case of unexpected expenses or emergencies.

Saving can be done in a variety of ways, such as opening a savings account, investing in stocks or other assets, or simply keeping cash in a safe place. The amount saved can be small or large, depending on one's income and financial goals.

Some people save for specific goals, such as a down payment on a house or a college education for their children, while others save to build an emergency fund or to save for retirement.

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During January, the production department of a process operations system completed and transferred to finished goods a total of 50,000 units. At the end of January, 10,000 additional units were in process in the production department and were 70% complete with respect to labor. The beginning inventory included labor cost of $41,000 and the production department incurred direct labor cost of $325,500 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Answers

Answer:

$6.43

Explanation:

Total equivalent unit = Completed and transferred to finished goods + Work in process inventory (70%) complete in labor

Total equivalent unit = 50,000 + 10,000*70%

Total equivalent unit = 50,000 + 7,000

Total equivalent unit = 57,000

Total direct labor cost = WIP labor expenses + Direct labor cost incurred during January

Total direct labor cost = $41,000 + $325,500

Total direct labor cost = $366,500

Direct labor cost per equivalent unit =Total direct labor cost / Total equivalent units

Direct labor cost per equivalent unit = $366,500 / 57,000 units

Direct labor cost per equivalent unit = $6.4298246

Direct labor cost per equivalent unit = $6.43

A rise in stock prices and housing prices
A. increases household wealth which in turn increases consumption and leads to an upward movement along the consumption function.
B. reduces consumption due to increase in prices and causes the consumption function to shift downward.
C. increases household wealth which in turn increases consumption and leads to an upward shift of the consumption function.
D. does not affect consumption because they do not have any direct impact on disposable income.

Answers

Answer:

B

Explanation:

Even though the country faces political instability, an island nation with wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land on this island with the intent of building a park targeted toward families. The company wants to make a commitment to the island, including the hiring of several hundred local employees. It is using a global marketing strategy called

Answers

Answer:

Foreign direct investment

Explanation:

In simple words, An investment in the shape of substantial participation in a firm in one nation by an organization located in another nation is known as a foreign direct investment. A sense of direct control distinguishes it from a foreign portfolio investment.

Thus, from the above we can conclude that the correct answer is foreign direct investment.

What are variables used by Honda to segment the market? Why do they use those variables to segment?

Answers

Answer and Explanation:

Honda market segmentation is based mainly on three market segmentation factors: demographics, behavioural factors, and psychographic factors. Demographic factors include: income/household income, age, family size etc. Behavioural factors include: purchasing behaviour, buying patterns etc. Psychographic factors include: psychological traits that affect a person's consumption habits, e.g- people that attach prestige to cars, people that prefer expensive cars etc.

Honda makes use of these segments in understanding their market, thereby grouping it's consumers into various segments which share same buying patterns, motivations, interests, or habits. For instance, Honda's market is mostly focused at individuals who do not want pricey cars; cars that are affordable and at the same time durable. This market is mostly made up of middle income individuals, therefore Honda would group these consumers accordingly.

Which of the following reflects Revenue after Deductions?

Answers

Answer:

Net income reflects the total residual income that remains after accounting for all cash flows, both positive and negative. In other words, from revenue, which is called the top-line number, all income, expenses, and costs are deducted to arrive at net income

NET INCOME

Explanation:

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A farm machinery salesperson has spent the last three weeks gathering information about a prospective customer. He has researched the customer's existing machinery and buying potential. However, he delays the actual meeting with the customer because he feels that he requires a couple of weeks more to gather enough information to make the sales call. In this scenario, the salesperson is experiencing a(n):

Answers

Answer: phenomenon called analysis paralysis.

Explanation:

Analysis paralysis occurs when an individual overanalyzes or over-thinks a situation which then brings about inability to make decisions.

In this case, since the salesperson delays the actual meeting with the customer because he feels that he requires a couple of weeks more to gather enough information to make the sales call despite gathering enough information, this is an analysis paralysis.

What caused china's phenomenal economic growth rate over the last 30 years, and why is it likely unsustainable in the long run?

Answers

Answer:

What caused china's phenomenal economic growth rate over the last 30 years

There are many causes for China's economic miracle in recent decades.

The first cause is that China decided to open the country to foreign investment in some parts of the country, the famous Special Economic Zones, the first one having been located in the city of Shenzhen, north of Hong Kong. This flow of capital boosted inustrial growth.

The second cause is that China became a manufacturing powerhouse due to lower labor costs, reason why most developed countries outsourced a large precentage of their manufacturing sector to China.

A third cause is that the Chinese government worked closely with both domestic firms and foreign firms in specific sectors, promoting a mixed economy in between economic planning and a market economy.

why is it likely unsustainable in the long run?

China's growth is likely unsustainable in the long run because as a country develops and catches up with the advanced world, its rate of growth tends to fall due to a myriad of reason, from capital exhaustion to lower demographic growth, to a less dynamic consumer market in several sectors.

When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) ________________, where he would receive tax breaks. Multiple Choice intrapreneurial territory affective designation immigration zone enterprise zone

Answers

Answer:

Enterprise Zones. Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support. Government Incubators

Explanation:

A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 400 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.

Answers

Answer:

9241.08 Hrs

Explanation:

Calculation to determine Approximately how many hours per year will the solar panels need to operate to enable this project to break

Let n represent hour of operation per year for breakeven

Breakeven annual cost = Annual savings

$1,800,000 * (A/P, 20%,20) = 400 * n * 0.1

$1,800,000 * 0.205357 = 400 * n * 0.1

n = 369,643/ 40

n= 9241.075

n=9241.08 Hrs (Approximately)

Therefore Approximately how many hours per year will the solar panels need to operate to enable this project to break will be 9241.08 Hrs

A big mining company wants to open a mine . The social costs are greater than the social benefits. Should the company carry on with this project or not?

Answers

Answer: They should not

Explanation:

The Social cost of a project refers to the total cost that society incurs as a result of the project. This includes the actual costs to the investors as well as the cost to society such as pollution. Likewise the social benefit is the entire benefit that accrues from the project.

When using the Social Cost Benefit Analysis, one should not pick a project that has a higher social cost than social benefit because it would lead to a social loss. In order words, the project would cost society more than society would benefit from it so there is no need to embark on such a project.

In the Sales Comparison Approach, if the subject has a better location than the comparable, the appraiser would need to adjust the comparable value: Group of answer choices down. None of these, the appraiser never adjusts the comparables. it depends. up.

Answers

Answer:

The answer is up

Explanation:

The sales comparison approach assumes that the value of a property depends on what other comparable properties are selling for in the current market. Ideally, the comparables would exactly be the same as the subject property in terms of age, size, location, view, quality etc.

So if the subject has a better location than the comparable, the appraiser would need to adjust the comparable value UP

During the listing presentation, it would be appropriate for broker Ted to present the statutory written statement regarding brokerage services. Ted should also caution the sellers that until they definitely decide to list with him, they should not reveal information that may later hurt their negotiation position with a buyer because Ted might later be required to reveal that information should he be dealing with a buyer-client. What else should Ted discuss with the sellers during the listing presentation

Answers

Answer: a. The listing agreement they will use

b) Ted's office policy regarding intermediary brokerage

c) Ted's office policy regarding commission splits with "other" brokers

Explanation:

Apart from the fact that the statutory written statement regarding the brokerage services will be presented, it is appropriate for Ted to discuss the following with the sellers.

• The listing agreement they will use

• Ted's office policy regarding intermediary brokerage

• Ted's office policy regarding commission splits with "other" brokers.

These are needed to ensure that both the sellers and the buyer understands each other's stand and the agreement that are in place to ensure a smooth transaction.

Which of the factors of industrialization does Baines cite in the reading? Check all that apply water power to run machines rivers for transportation of goods a growing population to work in factories natural resources for production natural resources for production wealthy people to invest in manufacturing

Answers

Answer: • Water power to run machines

• rivers for transportation of goods

• natural resources for production

Explanation:

Industrialization is when am economy moves from the agricultural sector to the industrial sector.

The factors of industrialization does Baines cite in the reading include:

• Water power to run machines

• rivers for transportation of goods

• natural resources for production

The factors affecting industrialization are water power to run machines, rivers for transportation of goods, and natural resources for production.

The industrialization process promotes the expansion of industries, businesses, and corporations in the economy. Here, water energies are utilized by industries for facilitating production activities, operating machinery, and cleaning purposes.

Similarly, rivers are also a major transportation mode for the transition of goods and raw materials that gives a boost to the production facilities of the business.

Finally, natural resources are the basis for raw materials for the industries depending on which further production processes are performed.

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What degree of risk is necessary to classify an activity as ultrahazardous?
A. No risk is needed
B. Moderate degree
C. High degree
D. Low degree

Answers

what degree of risk is necessaryto classify anactivity as ultrahazardous?

C is the answer

Name the market structure in which agriculture farming operate​

Answers

Answer:

primary sector involves agricultural stuufs

hope it is helpful

Harriet Kirby, a fund raising manager at a women's rights organization, experienced a bad incident last year with the public relations manager of a banking company who had committed to sponsor a charity event. The bank backed out at the last minute. This year, when a renowned international bank executive showed interest in sponsoring the organization's upcoming annual event, Kirby rejected their participation. She felt that banks have a casual approach toward charity events and it is risky to involve them in the event. Which of the following best characterizes Kirby's decision?
A) selective perception
B) cognitive dissonance
C) self-serving bias
D) bandwagon effect
E) self-fulfilling prophecy

Answers

Answer:

A

Explanation:

selective perception is a form of bias when new information is interpreted in a way that conforms to existing values and beliefs.

Who has the most goals in fifa history​

Answers

Answer:

Pele

explanation:

In 1.9k+ goals

help me now please and thank you

Answers

Answer:

3000

Explanation:

A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash and Group of answer choices is acceptable as a means to pay current liabilities. has a current market value that is greater than its original cost bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation. is so near its maturity that it presents insignificant risk of changes in interest rates.

Answers

Answer:

so near its maturity that it presents insignificant risk of changes in interest rates.

Explanation:

As we know that the cash equivalent i.e .short term and also classified as the highly liquid investment that is always ready to convert into the cash amount i.e. near to its maturity also at the same time it represent the non-significant changes risk with respective to the rate of interest

Therefore the last option is correct

A classmate excitedly tells you of what he believes to be a good deal. He goes on and on about signing up for a free 30-day trial of ad-free music on your smartphone. You decline the offer because you have seen deals like these before. You explain that while he might be enjoying the new Selena Gomez and Miley Cyrus tracks now, he needs to be sure to cancel before the trial is up. The music company is hoping that you will feel indebted to them for all the free music that was streamed and allow the payment to process. This is one application of the

Answers

Answer:

reciprocity principle

Explanation:

A reciprocity principle is a form of socio-psychological principle in which individuals generally tend to pay back in good, and in any form of capacity for whatever favor they receive.

Hence, in this case, the music company is hoping the the "reciprocity principle" will work on consumers that subscribe to free music as they might wish to give back to the company based on consumers feeling indebted to them for all the free music that was streamed

Among those not working, the most recent job-search activity for 2.90 million happened less than two weeks ago, while 1.72 million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, and the remaining 10.99 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places.

Answers

Answer:

A. 24.05

B. 4.62

C. 66.99%

D. 19.21%

Explanation:

A). Calculation to determine the Laborland's total labor force

Using this formula

Total Labor Force = Employed + Unemployed

Let plug in the formula

Total Labor Force = (4.9+ 14.53) + (2.9 + 1.72)

Total Labor Force = 19.43 + 4.62

Total Labor Force = 24.05

Therefore the Laborland's total labor force is 24.05

(B). Calculation to determine the Laborland's labor force participation rate

Unemployed = 2.90 + 1.72

Unemployed = 4.62

Therefore the Laborland's labor force participation rate is 4.62

(C). Calculation to determine How many people are unemployed in Laborland

Using this formula

Labor force participation rate = Labor force / Total working age population

Let plug in the formula

Labor force participation rate= $24.05 / 35.9

Labor force participation rate= 66.99%

Therefore How many people are unemployed in Laborland will be 66.99%

(D). Calculation to determine Laborland's unemployment rate

Using this formula

Unemployment Rate = Unemployed / Labor force

Let plug in the formula

Unemployment Rate = 4.62 / 24.05

Unemployment Rate= 0.1921 * 100

Unemployment Rate= 19.21%

Therefore Laborland's unemployment rate is 19.21%

Explain the difference between uninsured and underinsured.

Answers

Uninsured motorist insurance protects you if you're in an accident with an at-fault driver who doesn't carry liability insurance. Underinsured motorist coverage steps in when you're in an accident with an at-fault driver whose liability limits are too low to cover the medical expenses of any injured people.

possible reasons for the poor performance of the monopolies​

Answers

Answer:

Supply can be restricted to keep prices high. This leads to underprovision, or scarcity. Thus, according to general equilibrium economics, a monopoly can cause deadweight loss, or a lack of equilibrium between supply and demand.

Explanation:

Rita: The original purpose of government farm subsidy programs was to provide income stability for small family farmers. But most farm-subsidy money goes to a few farmers with large holdings. Payments to farmers whose income, before subsidies, is greater than $100,000 a year should be stopped.
Thomas: It would be impossible to administer such a cut-off point. Subsidies are needed during the planting and growing season, but farmers do not know their income for given calendar year until tax returns are calculated and submitted the following April.
Which one of the following, if true, is the strongest counter Rita can make to Thomas' objection?
(A) It has become difficult for small farmers to obtain bank loans to be repaid later by money from subsidies.
(B) Having such a cut-off point would cause some farmers whose income would otherwise exceed $100,000 to reduce their plantings.
(C) The income of a farmer varies because weather and market prices are not stable from year to year.
(D) If subsidy payments to large farmers were eliminated the financial condition of the government would improve.
(E) Subsidy cut-offs can be determined on the basis of income for the preceding year.

Answers

Answer: E. Subsidy cut-offs can be determined on the basis of income for the preceding year.

Explanation:

Since Thomas counters Rita's point stating that during the initial part of the season, subsidies are needed. On the other hand, the income for the year will be calculated when the year ends.

To counter Thomas, it should be noted that Rita can say that subsidy cut-offs can be determined on the basis of income for the preceding year.

er book 3 Project 2021 Explain TWO major consequences for Boni and Pale should they be negligent in performing their duties.​

Answers

Answer:

er book 3 Project 2021 Explain TWO major consequences for Boni and Pale should they be negligent in performing their duties.

impact of lockdown on business​

Answers

Explanation:

Impact on lockdown on business It has been very tough time for buisness  as far as we know buisness hasnt last long enough and there has been very huge losses.

Which of the statements below is​ TRUE? A. Buying of shares is the selling of ownership in the company. B. A company is said to go​ "private" when it opens up its ownership structure to the general public through the sale of common stock. C. Private companies can go public by choosing to sell stock to attract permanent financing through equity ownership of the company. D. Most companies have the resident expertise to complete an initial public offering​ (IPO), or first public equity issue.

Answers

Answer:

C. Private companies can go public by choosing to sell stock to attract permanent financing through equity ownership of the company.

Explanation:

Private companies could go to the general public by selecting to sale the  stocks in order to attract permanent financing via equity ownership of the company because they can sale the shares easily on the primary market in order to increased the finance also it will be help for raising the firm for the long period as the equity financing is considered for the long term financing

Hence, the option c is correct

Contrast how a depositor's account is classified by a bank compared to how it is classified by the account owner by completing the following sentence. A depositor's account is a(n) (liability/asset/expense) on the bank's records, but it is a(n) (liability/asset/expense) on the books of the account owner. Because of this, every time the account owner makes a deposit, the bank (debits/credits) the account owner's account.

Answers

Answer:

A depositor's account is a liability on the bank's records, but it is an asset on the books of the account owner. Because of this, every time the account owner makes a deposit, the bank credits the owner's account.

Explanation:

A liability is a debt that a person or company owes to another party, usually in the form of money. Therefore, a depositor's account shows the amount the banking is owing the depositor. This makes it a liability.

An asset is any resource that a business or economic entity owns or controls, such as money. Therefore, a depositor's account shows the amount a depositor has in the bank or the amount the bank is owing him. This therefore makes it an asset.

According to accounting principle, all assets must be debited while liabilities must credited. Since a deposit a liability to the bank, the bank credits the owner's account every time the account owner makes a deposit.

Therefore, a depositor's account is a liability on the bank's records, but it is an asset on the books of the account owner. Because of this, every time the account owner makes a deposit, the bank credits the owner's account.

Intra-industry trade between similar trading partners allows the gains from ______________________ that arise when firms and workers specialize in the production of a certain product.
a. comparative advantage
b. learning and innovation
c. creating the value chain
d. relative advantage

Answers

Answer:

b. learning and innovation

Explanation:

Intra-industry trade can be regarded trade involving exchange of similar products which belongs to the same industry. Intra-industry trade as a term

is usually used as regards to international trade, whereby same services or types of goods is been imported and exported. Learning and innovation skills usually spring out from a particular firm base it's speciality on one kind of products. It should be noted that Intra-industry trade between similar trading partners allows the gains from learning and innovation that arise when firms and workers specialize in the production of a certain product.

Answer:

Learning and innovation

Explanation:

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