1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anuta_ua [19.1K]
1 year ago
11

If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of secur

ity risk for that investor is the __________.
Business
1 answer:
Lady_Fox [76]1 year ago
7 0

If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the "stock's standard deviation."

<h3>What is standard deviation?</h3>

The standard deviation would be a statistic that calculates as square root of a variance and indicates the dispersion of the a dataset compared to its mean.

Its standard deviation is determined as the square root of the variance by determining the deviation of each data point from the mean.

Some key features regarding the  standard deviation, are-

  • The standard deviation of a dataset reflects its dispersion compared to its mean.
  • A square root of a variance is used to compute it.
  • In finance, standard deviation is frequently employed as a measurement of an asset's relative riskiness.
  • The volatile stock has a large standard deviation, whereas a description stock has a low deviation.
  • The standard deviation, on the other hand, assesses all ambiguity as risk, especially when it is in the investor's advantage, such as above-average profits.

To know more about  standard deviation, here

brainly.com/question/475676

#SPJ4

You might be interested in
An environmentally, friendly 2,800 square-foot green home (99% air tight) cost about 8% more to construct than a same-sized conv
Sindrei [870]

Answer:

2121.566 will be saved

Explanation:

Extra cost=8%

Saving per year=15%

Extra Cost of home=250000*0.08=$20000

Let the energy saving required per year to justify the home=x

Extra cost paid = P.v of energy saving

20000=x*Annuity factor(10%@30 years)

20000=x*9.427

X=2121.566

6 0
2 years ago
Which of the following is not a type of savings account? A) money market savings B) savings bonds C) basic savings D) certificat
PSYCHO15rus [73]
D certificate of savings
4 0
3 years ago
Read 2 more answers
Even after a foreclosed property is sold at public auction, the defaulting borrower may be able to recover the property for a ti
9966 [12]

This right is called the right of Redemption

The right of redemption enables borrowers who have fallen behind on their mortgage payments to regain their homes by paying the outstanding balance plus interest and penalties either before the foreclosure process gets underway or, in some areas, even after a foreclosure auction.

When a person takes out a mortgage to purchase a property, the house itself acts as security for the loan. In other words, if a homeowner misses a payment, they lose possession of the house. Many mortgage notes contain a clause referred to as the right of foreclosure that explains a lender's power to foreclose on a property and specifies the circumstances in which the lender may do so.

Learn more about the Redemption here brainly.com/question/13554337

#SPJ10

8 0
1 year ago
The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can
DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0
3 years ago
How do banks benefit of giving people loans
Kitty [74]

Answer: It all ties back to the fundamental way banks make money: Banks use depositors' money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the banks' profit.

Explanation: Hopefully this helped!

5 0
3 years ago
Read 2 more answers
Other questions:
  • Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 wi
    5·1 answer
  • What color is red in the spectrum?
    15·1 answer
  • There is always some degree of government involvement in a mixed economy.<br> O<br> True<br> O False
    11·2 answers
  • Which of the following terms is correct?
    15·1 answer
  • One commonly used relative unit is the ____ unit.
    15·2 answers
  • Which subsystem of marketing MIS systems summarizes and reports the results of surveys, questionaires, pilot studies, consumer p
    12·1 answer
  • To save energy and money, Jackie Smith replaced the 150 Watt incandescent light bulb in her house with a 32 Watt CFL bulb. The e
    14·1 answer
  • Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi
    10·1 answer
  • Prior to 2005, it seemed like house prices always rose and never fell. When the demand for housing increases, prices in the hous
    5·1 answer
  • In strategic management, both the short-term and long-term perspectives need to be considered because a. the creative tension be
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!