Why an investor might choose to have less than 20% holding in a company if they could have more?

1 answer:

3 0

The simple answer here is you never want to over commit any part of your portfolio. Every single successful investor has a wide variety of investment holdings. This is known as diversification. If you place all of your "eggs in one basket," so to speak, if that investment were to play against you, your losses may be much higher than anticipated or often irrecoverable. With a diverse portfolio, when one small portion of your investment strategy fails, you can count on other, more successful aspect to make up the difference.

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A fee collected by a real estate agent upon the sale of a property is

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The projections for a new project show sales of 8,500 units, give or take 5 percent. The expected variable cost per unit is $28.

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Answer:

$56,950

Explanation:

We will calculate the operating cash flow as follow;

OCF = {[($55 - $28.62) 8,500 ] - $170,000} × (1 - 0.35) + ($62,000 × 0.35)

= {[$224,230] - $170,000} × 0.65 + ($21,700)

= $35,249.5 + $21,700

= $56,950

Therefore, the operating cash flow is $56,950

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Social Media Analyst collects and analyzes data day-to-day social media advertising campaigns. Assists groups in figuring out suitable social media channels for their specific enterprise needs, and tailors campaigns every day for the target audience.

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