Answer:
E. spreading an investment across many diverse assets will eliminate some of the total risk
Explanation:
Total risk is composed of systematic and unsystematic risk. Diversification eliminates nearly all unsystematic risk; which is also known as diversifiable risk or firm-specific risk. This is done by holding assets which are negatively correlated; like from uncorrelated industries. Systematic risk on the other hand affects the entire securities market and investors are compensated for it through a risk premium.
Answer:
Tax accountants ensure that companies and individuals comply with tax laws by filing their federal and state income tax returns. Some tax accountants also offer tax planning advice to help businesses and individuals save money in taxes.
Answer:
Positive economic profit
Explanation: In the economic profit, we have to consider the revenue earned and the cost of production including the opportunity cost. In the scenario above, the economic profit is positive, because, the average and marginal cost falls by $0.15 at a time when the sales price of the product is $0.20. The economic profit here is positive, due to the further reduction in the marginal and average price of an important material in the production process. In this scenario, due to positive economic profit, the New firms are attracted to the market.
Certification of Deposit (CD ) pays the same interest as Savings Account. And Money Market Account has higher interest rate. Checking account pays little or no interest. So for Jorge is the best option to use:
B ) Money Market Account.
