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3 years ago

What type of risk is eliminated through diversification?

Business

2 answers:

Helen [10]3 years ago

7 0

Answer:

Unsystematic risk

Explanation:

This risk is inherent in a specific company or industry. Then diversification helps to avoid this risks as investments are made in different companies and industries.

Annette [7]3 years ago

3 0

The risk that diversification helps us overcome is known as an unsystematic risk.

Explanation:

As the name suggests, it means a situation of a company being affected by a risk that doesn’t exist in other industries. It only takes place in a specific industry. Diversification is taken up to reduce this risk; the companies invest in various sectors rather than sticking to one specific sector.

It also involves allocating various financial instruments for investments. Diversification targets the returns and helps in improving it as the company invests in various categories that perform differently and differ in reactions too.

You might be interested in

To segment markets means to distinguish customers or markets according to common characteristics.

guapka [62]

Your answer is true that is what a segmented market is

7 0

3 years ago

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

mario62 [17]

Answer: False

Explanation:

Ethics are the moral principles which govern the behavior of a person. Ethics help us to know what is right or what is wrong.

Ethics Training program are done in order to enable workers to be able to identify and also deal with the ethical problems that they may face.

Therefore, the statement that "Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior" is false.

6 0

2 years ago

For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a

ziro4ka [17]

Answer:

$3,860

Explanation:

The balance in the account Allowance for Doubtful Accounts is expected to be the projected amount in receivables of the company that will not be converting to cash.

Therefore to calculate final balance of allowance for doubtful balance

Beginning balance 2700

Bad debt expense (410000*1%) 4100

Less: Written off -2940

Ending balance 3860

So answer is $3,860

4 0

2 years ago

The following are the transactions for Evans Company: a. Sold merchandise for $645. The cost of goods sold was $375. b. Sold mer

omeli [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

7 0

3 years ago

Which one of the following statements best defines the efficient market hypothesis? A. Efficient markets limit competition. B. S

lubasha [3.4K]

Answer:

The correct answer is letter "D": All securities in an efficient market are zero net present value investments.

Explanation:

The Efficient Market Hypothesis (EMH) states that neither public or insider information cannot help in an attempt to beat the market because stocks already show all available information possible. Thus, neither using technical or fundamental analysis could be useful to predict future stock price movement.

In other words, in a market under EMH all stocks are zero Net Present Value (present value inflows minus present value outflows) investment vehicles.

5 0

2 years ago