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:

High Risk Situations

Scenarios or conditions that significantly increase the likelihood of engaging in unhealthy or harmful behaviors.

Personal Strengths

Individual attributes or qualities that contribute to one’s ability to succeed or excel in certain activities or pursuits.

Stress Times

Periods or situations of heightened tension, pressure, or stress, often requiring increased coping mechanisms or support.

Relapse

The return to a previous state of disease or undesirable behavior after a period of improvement or abstinence, especially in the context of addiction.