Purchases of stocks and bonds to you, the future economist, are not considered investments. Explain if...
Purchases of stocks and bonds to you, the future economist, are not considered investments. Explain if this statement is true or false. Why are stock and bond purchases excluded from GDP accounts?
Homework Answers
This a false statement. There are various types of investment and one of the types of investment is financial investment. Purchase of stocks and bonds is considered as a form of financial investment . Thus, the statement is false and purchase of stocks and bonds is considered as an investment in the economy.
However, in calculation of GDP of a nation, we exclude investment in stocks and bonds because investment in GDP calculation includes the purchase of new capital goods, which includes new commercial real estate such as buildings, factories and stores and equipment, residential housing construction and inventories.
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Purchases of stocks and bonds to you, the future economist, are
not considered investments. Explain if...
Discuss the difference between stocks and bonds as investments for an individual. What benefits does the...
Discuss the difference between stocks and bonds as investments for an individual. What benefits does the investor receive from each type of security? What risks are associated with each type of security? How do preferred stocks differ from common stocks? Where can an investor find and read stock and bond quotes? How are bonds priced? What is the relationship between bonds and interest rates?
Why do you need to know investments, bonds, stocks, interests?
Why do you need to know investments, bonds, stocks, interests?
Why are government bonds considered more liquid than corporate stocks? Select one: a. Bonds are easier...
Why are government bonds considered more liquid than corporate stocks? Select one: a. Bonds are easier to purchase than corporate stocks b. The bonds market is larger (is worth more money) than the stock market c. Bonds can be sold more quickly than stocks d. Bonds do not fluctuate in price as much as stocks e. Bonds and stocks are actually equally liquid
Assignment Chapter 12- Investing in Stocks and Bonds s Back to Assignment Attempt Keep the Highest:...
Assignment Chapter 12- Investing in Stocks and Bonds s Back to Assignment Attempt Keep the Highest: 13 3. Forecasting stock value Understanding the returns from investing hen buying stock, you can expect to earn money through future current income (from ) and future capital appreciation (from ). Together, your l earnings from a given investment can be expressed in terms of the approximate yield. This value makes it easier for you to compare investment options. tota Understanding the Approximate Yield...
Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From...
Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From an investment point of view, bonds are considered to safer than stocks. They are generally of lower risk offering lower but guaranteed returns unlike stocks. As an investor in bonds, you would lend money to the issuer of the bonds also known as fixed income securities. It is important to understand what bonds are and how they are work as investment vehicles. Suppose a...
True or False and why. ? 3. In general, the shorter the bonds remaining maturity, the...
True or False and why. ? 3. In general, the shorter the bonds remaining maturity, the smaller the price sensitivity of a bond to a change in interest rates. 4. A stocks market risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
IB- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the...
IB- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%...
1B- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the...
1B- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%...
Explain why bonds (and bond mutual funds and ETFs), even though they offer lower returns than...
Explain why bonds (and bond mutual funds and ETFs), even though they offer lower returns than stocks, are commonly added to stock portfolios to create "balanced" portfolios. Include the impact bonds have on portfolio volatility based on bond's volatility relative to stocks and bond's correlation with stocks
Please help! Thank you! Large Stocks Small Stocks Govt Bonds Corporate Bonds Investment High Grade Yield...
Please help! Thank you!
Large Stocks Small Stocks Govt Bonds Corporate Bonds Investment High Grade Yield 11.3% 15.3% 7.0% 70% 7.6% Means Full Sample Business Cycles Recessions Expansions 5.6% 12.4% 7.8% 16.8% 12.3% 5.9% 12.6% 6.0% 7.4% 7.7% Consider the economic growth factor. What are good times and bad times? Are stocks high-economic-growth-beta assets or low economic-growth-beta assets? What about govt bonds? Assume that all investors dislike recessions. Which asset (stock vs. govt bond) should have a higher expected return?
Assignment Chapter 12- Investing in Stocks and Bonds s Back to Assignment Attempt Keep the Highest: 13 3. Forecasting stock value Understanding the returns from investing hen buying stock, you can expect to earn money through future current income (from ) and future capital appreciation (from ). Together, your l earnings from a given investment can be expressed in terms of the approximate yield. This value makes it easier for you to compare investment options. tota Understanding the Approximate Yield...
Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From an investment point of view, bonds are considered to safer than stocks. They are generally of lower risk offering lower but guaranteed returns unlike stocks. As an investor in bonds, you would lend money to the issuer of the bonds also known as fixed income securities. It is important to understand what bonds are and how they are work as investment vehicles. Suppose a...
IB- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%...
1B- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%...
Please help! Thank you!
Large Stocks Small Stocks Govt Bonds Corporate Bonds Investment High Grade Yield 11.3% 15.3% 7.0% 70% 7.6% Means Full Sample Business Cycles Recessions Expansions 5.6% 12.4% 7.8% 16.8% 12.3% 5.9% 12.6% 6.0% 7.4% 7.7% Consider the economic growth factor. What are good times and bad times? Are stocks high-economic-growth-beta assets or low economic-growth-beta assets? What about govt bonds? Assume that all investors dislike recessions. Which asset (stock vs. govt bond) should have a higher expected return?
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