The long run rate of return on investments reflects of those investment have following reasons.
- It totally depnds upon the market risks and the behavioral and also the next reason is stability in the market for long and to maintain standard for such a long period is also challenging.
- It is not necessary that other things always remain constant some of the natural calamities or disasters can reverse the economy.
- Global investments depends upon the strategic relationship and trade policies thus it also plays an important role.
This were some reasons for the riskiness of long term rate of return.
Explain why in the long run the rate of return on investments reflects the riskiness of...
Explain why in the long run the rate of return on investments reflect the riskiness of those investments.
Is the average rate of return on an investment a good representation of the long-run rate of return that a buy-and-hold investor receives? Is it possible to lose all your money on a buy-and-hold portfolio that had a positive average rate of return?
Why do economists believe that inflation in the long run is entirely a monetary phenomenon? Explain fully.
Nominal Eachange Rates (Long-Run): Explain why a decrease in output supply in Canada relative to the US has an ambiguous effect on the nominal exchange rate, ECADI/uso, in the long-run
Cardinal Capital is a company that makes relatively high risk/high return investments in promising small businesses across multiple markets. The company is in the process of developing a strategy/policy for its 2017 investment portfolio, which will have a maximum of $15 Million with which to work. The table below provides data gathered from analysis of historical investments and future projections. Type of Business Median Rate of Return Loss Rate Software 23% 15% Restaurant/Food Production 10% 6% Retail 7% 5% Manufacturing...
Explain the logic of the monetary neutrality and why changes in the quantity of money only affect nominal variables and not real variables. Do you agree that monetary neutrality approximates the behavior of the economy in the long run? Why or why not? MUST BE OVER 250 WORD RESPONSE
Suppose the economy starts out in a long-run equilibrium at potential GDP.. Draw the economy’s short-run and long-run Phillips curves in one graph an AS/AD diagram with potential GDP shown in a second graph. Suppose a wave of business pessimism reduces aggregate demand. Show the effect of this shock on your diagrams from part a). Can the government return the economy to its original inflation rate and original unemployment rate using fiscal policy? Now start over with the economy back...
Explain the Two-Fund Separation Theorem and discuss possible explanations to why it is barely supported by empirical evidence. References and citations are needed to support your arguments. Your answer must not exceed 300 words and you must note your word count at the end of your answer. Tables/diagrams/references/direct quotes/footnotes and the reference list are excluded from the word count. (30 marks)
What do you believe are three important long-term uncertainties facing companies today, and why? Long-term means at least 10 years into the future. Answer the question in a single paragraph of no more than 300 words, and cite reputable sources.
(25pts) 2. Suppose the government wants to reduce its budget deficit. Using the long-run model of the economy developed in Chapter 3, illustrate graphically the impact of the alternative fiscal policy measures indicated in parts (a) and (b) below. Be sure to label: (i) the axes, (ii) the curves, (iii) the initial equilibrium values; (iv) the direction curves shift; and (v) the final equilibrium values. (15) a) Suppose the government decides to reduce the government's budget deficit by reducing government...