What Are the Two Variables That Are Used to Determine

question 93

Short Answer

What are the two variables that are used to determine where a specific financial instrument will be placed on the risk-return continuum?
The prime interest rate and the quality of the company in question
The amount of debt and the amount of equity the company has
The size of the financial returns that must be offered to induce investment and the uncertainty about financial returns on investments
The size of the financial returns that must be offered to induce investment and the economic growth prospects over the next year
The mix of short- and long-term sources of funds the firm is using

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Definitions:

Mental States

The condition of one's mind or consciousness, which can include thoughts, beliefs, emotions, and intentions.

Perceptions

The way sensory information is organized, interpreted, and consciously experienced.

Desires

Strong feelings of wanting or wishing for something to happen.

Adolescent Learning

The process of acquiring knowledge, skills, attitudes, and values during the teenage years.