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
Arlecino [84]
3 years ago
13

Belinda just inherited​ $10,000 from her​ grandfather, and she wants to invest it in the stock market. Rather than investing the

entire​ $10,000 in the stock of one​ company, she decides to buy​ $2,000 of stock in each of five different​ companies, all in different sectors of the economy.​ Belinda's investment strategy is referred to as​ ________.
Business
1 answer:
Maru [420]3 years ago
3 0

Answer:

The strategy is called sector-wise diversification.

Explanation:

This is an excellent way to diversify and distribute the risk as if we only invest in companies in one sector of the economy, if that sector is affected by poor economic conditions, the companies in that sector will under perform and the entire portfolio will go down in value.

However, if we diversify the risk among different sectors such as agriculture, consumer goods, banks and financial services, diversified holdings, food and beverages, etc.. even if a sector falls under difficult times, the rest of the portfolio will only be slightly affected,

You might be interested in
Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred
adelina 88 [10]

Answer:

True

Explanation:

A cost sheet is a statement that contains all the cost incurred on a cost unit or a cost centre. A  typical cost sheet will accumulate all the direct and indirect material consumed in the production of a product. Also included in the cost sheet is direct labor incurred in the making of a product including allocated overhead. With this, the margin on a product can be observed from a cost sheet.

7 0
2 years ago
In two to three sentences, explain why a small amount of inflation encourages economic growth. will give brainliest
mylen [45]

Answer:

A small amount of inflation can be really good for the economy. It can boost consumer demand and consumption. This encourages spending and investing.

4 0
3 years ago
Analysis reveals that a company had a net increase in cash of $22.420 for the current year. Net cash provided by operating activ
antoniya [11.8K]

Answer: 4,840

Explanation: Analysis reveals that a company had a net increase in cash of $22,310 for the current year.

Therefore,

The year-end cash balance -  the beginning cash balance = $22,310

The beginning cash balance = The year-end cash balance - $22,310

The year-end cash balance is $27,150

The beginning cash balance =  $27,150 - $22,310 = $4,840

8 0
2 years ago
In late December you decide, for tax purposes, to sell a losing position that you hold in Twitter, which is listed on the NYSE,
Mariana [72]

Answer:

4

Explanation:

7 0
3 years ago
All of the following are career pathways for Finance except: A. operations management B. accounting C. banking services D. Insur
Nataly_w [17]

operations management

7 0
3 years ago
Read 2 more answers
Other questions:
  • Copywriters can correlate the visual and headline to the _____ step of the creative pyramid.
    12·1 answer
  • What is a corporation?
    6·2 answers
  • Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal
    11·1 answer
  • Convention hotels provide meeting rooms and banquet hotels to convention participants. Sometimes a specific convention may invol
    11·1 answer
  • Suppose timothy consumes two goods, soda and chips. the slope of his indifference curve for these two goods reflects:​
    7·1 answer
  • If the consumption of a product or service involves external benefits, then the government can improve efficiency in the market
    5·1 answer
  • Major limitations of the balance sheet include all of the following except: it necessarily omits many items that are of financia
    13·1 answer
  • High-income families spend approximately _______ to raise a child.
    5·1 answer
  • Sergio, the manager of a software firm, has a new project for his team. He is preparing a set of targets and making decisions on
    15·1 answer
  • How much would you need to deposit in an account now in order to have $3000 in the account in 15 years
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!