Answer:
U.S. households or firms wishing to purchase foreign goods or assets.
I think its D. hope this helps
Answer:
A
Explanation:
Should be A as your savings account will accrue interest and the stock market is volatile.
Answer:
Consider the following explanation and calculation
Explanation:
In the existing portfolio, the risk or standard deviation is 28%
The Correlation Coefficients(CorC) of the 4 stocks in the portfolio is 0.4
Higher the CorC higher the risk of the portfolio.
The market standard deviation is 20%, which is below the current portfolio SD
The 40 stocks being added to the portfolio have a lower CorC of 0.3 (than the 0.4 of the existing stocks).
Since we are adding stocks with lower SD (20% market average) and lower CorC, this would bring down the risk of the portfolio.
This would narrow down to the options B and D.
But since no stock being added has a negative CorC, the possibility of the risk being cancelled (to 0%) is not present.
So the correct option is B.
Other way to look at it would be adding more and more stock from the market to the portfolio will bring the portfolio itself more and more closer to the market itself aligning the SD of portfolio equal to the market which is 20%
Basic and Routine decisions is the kind of decision-making process that the management follows in the given scenario.
<h3><u>Explanation:</u></h3>
Basic decision are taken when some crisis arises. These decisions require the formulation of new rules with different thinking process.
<u>Example:</u> Location of plant, plant diversification and selection in distribution of channels.
For an organization basic decisions are of strategic aspects and routine decisions are of tactical aspects. Since routine decisions are of repetitive nature and need small consideration based on the decision made. Lilian has to make decision to improve the quality of the product and the soil and also need to rent new farms.