Explain a connection between long- and short-term investments and return.
Explain a connection between long- and short-term investments and return.
Homework Answers
Long-term investments are investments that pay back over a period of numerous years. While making long-term investments, you can choose to be more aggressive and may decide to invest in an aggressive mutual fund to get the maximum rate of return.
Short-term investments, as the name indicates are traded within the time-frame of three years or less. Investment channels that lend themselves to a shorter investment time period are mutual funds, stocks, and some bonds & bond mutual funds
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Explain a connection between long- and short-term investments and return.
There are a few advantages and disadvantages to short term and long term investments. Long term...
There are a few advantages and disadvantages to short term and long term investments. Long term investments are easier to risk because of the time period, however some people prefer to invest in short term investments to test the risk first. Making a decision on which method to proceed with depends on the individual or the company, its past financial activities and how much the individual or company is willing to risk. There are 4 strategic purposes for investing in...
Ch 15 Demo Problems QS 15-1 Distinguishing between short- and long-term investments C1 Which of the...
Ch 15 Demo Problems QS 15-1 Distinguishing between short- and long-term investments C1 Which of the following statements are true oflong-term investments? ,a. They can be considered cash equivalents. b. They can include assets not used in operations, such as investments in land. c. They generally include investments that will mature in 3 to 12 months. d. They are reported with noncurrent assets on the balance sheet. e. They are always easily sold and therefore qualify as being marketable. f....
What impact would this change from a long-term to a short-term relationship have on the investments...
What impact would this change from a long-term to a short-term relationship have on the investments that students make in their relationship with the university? How could the students protect themselves in this situation? Are there any reasons why the universities may prefer to keep their relationships with their students as a long-term commitment?
.. Which of the following is the main difference between the short term and the long...
.. Which of the following is the main difference between the short term and the long term: A. Direct labor can be adjusted in the long term but not in the short term B. Direct labor can be adjusted in the short term but not in the long term C. Capacity resources can be adjusted in the long term but not in the short term D. Capacity resources can be adjusted in the short term but not in the long...
I. Define short-term investments, stocks, and fixed income investments. II. Discuss the risks of short-term investments,...
I. Define short-term investments, stocks, and fixed income investments. II. Discuss the risks of short-term investments, stocks, and fixed income investments. Cite at least two sources using APA format.
What impact would this change from a long-term to a short-term relationship have on the investments that students make i...
What impact would this change from a long-term to a short-term relationship have on the investments that students make in their relationship with the university? How could the students protect themselves in this situation? Are there any reasons why the universities may prefer to keep their relationships with their students as a long-term commitment?
Why do long term securities have a higher return than short term securities ?
Why do long term securities have a higher return than short term securities ?
4 Short Answer (20 MARKS) 1. Explain the connection between the vertical long-run aggregate supply curve...
4 Short Answer (20 MARKS) 1. Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve. 2. Suppose that the Bank of Canada unexpectedly decreases the money supply. What will happen to unemployment in the short run? What will happen to unemployment in the long run? 3. Why do many economists advocate a consumption tax rather than an income tax? 4. The following chart, published by the Wall Street Journal, shows the debt-to-GDP ratios...
Explain why in the long run the rate of return on investments reflect the riskiness of...
Explain why in the long run the rate of return on investments reflect the riskiness of those investments.
Trading securities (at cost) Short-term stock investments (at cost) Equity method investments Held-to-naturity securities (long-tern) $...
Trading securities (at cost) Short-term stock investments (at cost) Equity method investments Held-to-naturity securities (long-tern) $ 5,200 23.500 70.500 13.500 Cash Fair value adjustment-stock Accounts receivable Fair value adjustment-trading $ 10.500 (-1.100) 2.500 600 Prepare the assets section of a classified balance sheet. Hint Fair Value Adjustment-Trading increases trading securities; Fair Value Adjustment-Stock decreases Stock investments (Amounts deducted should be indicated by a minus sign.) GERMX CO. Assets Section of Balance Sheet December 31 Assets Current assets Cash Stock investments...
Ch 15 Demo Problems QS 15-1 Distinguishing between short- and long-term investments C1 Which of the following statements are true oflong-term investments? ,a. They can be considered cash equivalents. b. They can include assets not used in operations, such as investments in land. c. They generally include investments that will mature in 3 to 12 months. d. They are reported with noncurrent assets on the balance sheet. e. They are always easily sold and therefore qualify as being marketable. f....
.. Which of the following is the main difference between the short term and the long term: A. Direct labor can be adjusted in the long term but not in the short term B. Direct labor can be adjusted in the short term but not in the long term C. Capacity resources can be adjusted in the long term but not in the short term D. Capacity resources can be adjusted in the short term but not in the long...
4 Short Answer (20 MARKS) 1. Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve. 2. Suppose that the Bank of Canada unexpectedly decreases the money supply. What will happen to unemployment in the short run? What will happen to unemployment in the long run? 3. Why do many economists advocate a consumption tax rather than an income tax? 4. The following chart, published by the Wall Street Journal, shows the debt-to-GDP ratios...
Trading securities (at cost) Short-term stock investments (at cost) Equity method investments Held-to-naturity securities (long-tern) $ 5,200 23.500 70.500 13.500 Cash Fair value adjustment-stock Accounts receivable Fair value adjustment-trading $ 10.500 (-1.100) 2.500 600 Prepare the assets section of a classified balance sheet. Hint Fair Value Adjustment-Trading increases trading securities; Fair Value Adjustment-Stock decreases Stock investments (Amounts deducted should be indicated by a minus sign.) GERMX CO. Assets Section of Balance Sheet December 31 Assets Current assets Cash Stock investments...
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