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ValentinkaMS [17]
2 years ago
14

A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are:____.

Business
1 answer:
Vanyuwa [196]2 years ago
4 0

A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are not perfectly positively correlated.

A stock portfolio is a collection of stocks that are invested in with the hope of making a profit. By putting together a diverse portfolio that spans various sectors individual  will be able to become a more resilient investor.

This is  because if one sector takes a hit, the investments  held by you  in other sectors aren’t necessarily affected.

When assembling a stock portfolio, it’s important to have the organizational goals in mind beforehand. That way the  decision-making process is guided by reason as opposed to emotion.

To know more about stock portfolio here:

brainly.com/question/13463364

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RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%,
qaws [65]

Answer:

They should not be able to successfully negotiate the terms of this loan within these parameters.

Explanation:

It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.

if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.  

Interest = $10,000*0.12

             = $1,200

RT requires $1,200 in interest.

It has been provided that Cynthia earns 8% on her investment.

If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.  

Earning = $10,000*0.08

             = $800

Cynthia is going to earn $800

RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.

Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.

6 0
3 years ago
Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it rep
andreev551 [17]

Answer:

<u>EQUITY AND LIABILITIES</u>

<u>EQUITY</u>

Retained earnings                    $ 41,563

Preferred stock                          $ 8,485

Common stock - Issued             $ 8,743

Treasury stock                           $ 2,450

Share Premium                        $ 52,878

Total Equity                                $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.

<u />

8 0
3 years ago
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Keith_Richards [23]

Answer:

illusion of control.

Explanation:

The illusion of control is the tendency for people to overestimate their ability to control events; for example, it occurs when someone feels a sense of control over outcomes that they demonstrably do not influence.

In the scenario, although Business has been consistently slow on Fridays in recent months, yet DeMarcus decides to continue with the extra staffing.

This is obviously a case of illusion because he has no control over the external business environment and there is no logical reason to continue with extra staffing.

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