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Alex17521 [72]
2 years ago
6

Efficient portfolios of N risky securities are portfolios that Multiple Choice have the lowest standard deviations and the lowes

t rates of return. have the highest rates of return for a given level of risk. have the highest risk and rates of return and the highest standard deviations. are selected from those securities with the lowest standard deviations regardless of their returns. are formed with the securities that have the highest rates of return regardless of their standard deviations.
Business
1 answer:
Kamila [148]2 years ago
7 0

Answer: Have the highest rates of return for a given level of risk.

Explanation:

Efficient Portfolios offer the highest rates of return for a given level of risk or the lowest risk for a given return. This means that they always maximise returns for a given level of risk which makes them very attractive to the point that they are labeled 'The Optimal Portfolio'.

It is argued at at this level, including any other Investment vehicle or rather diversifying the portfolio further cannot be done unless more risk is accepted. This is the point where the portfolio can get no less riskier for the return it offers.

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Answer the following as True or False.
svp [43]

Answer:

1. False

2. True

3. True

Explanation:

In Accounting, declaring and paying a stock dividend only decreases Retained Earnings but not Stockholders' Equity on the balance sheet because it has no effect on the cash position of an organization.

5 0
2 years ago
A company issued 115 shares of $100 par value common stock for $12,500 cash. the total amount of paid-in capital is:
Olegator [25]

A company issued 115 shares of $100 par value

<span> Common stock value = $12,500 </span>

Total amount of paid-in capital = ?

Multiply the shares with amount par value =

Amount of shares = 115 x 100 = $11,500

Total amount of paid-in capital = common stock value - total amount of shares = $12,500 - $11,500

= $1000

So, total amount paid in capital is $1000.

5 0
2 years ago
The Pak-It-Your-Way Company makes custom packaging of all kinds. The firm has evolved into a big business due to quality and inn
lozanna [386]

Answer:

<u><em>Social Audit</em></u>

Explanation:

The Pak-It-Way Company makes custom packaging of all kinds . The firm has evolved into a big business due to quality and innovative work . Recently , top management asked company departments to list and evaluate the kinds of socially responsible efforts conducted internally and externally in the business and also to list negative occurrences that supervisors observed . Top management is essentially conducting a <u>social</u> <u>audit.</u>

<em>Social audit is an audit to examine how an organisation is behaving or working for its employees , society and environment.</em>

Social audit helps in encouraging the participation of the community , it also helps in encouraging the local democracy, it promotes the decision making and helps in developing the human resources.

Social audit has wide coverage , it is evaluated very systematically , it is always conducted in a regular period of time , it measures the social performance of the organisation towards its employees society and the environment. But social audit is difficult to conduct.

8 0
3 years ago
When mp3 players emerged and cassette players declined in popularity, what type, or types, of unemployment were created?
-BARSIC- [3]
<span>When mp3 players emerged and cassette players declined in popularity, the type/s of unemployment created were of those who are making the wires, the mp3 players, the cassette players, the CD players and even the owner or companies who are suppliers of products that are needed to assemble the machines.</span>
6 0
3 years ago
A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 39.44% and 70% of Stock 2 with a standard deviatio
zzz [600]

Answer:

The standard deviation of this portfolio is approximately 39.36%.

Explanation:

This can be calculated by first calculating the variance of this portfolio using the portfolio variance formula as follows:

Portfolio variance = (WS1^2 * SDS1^2) + (WS2^2 * SDS2^2) + (2 * WS1 * SDS1 * WS2 * SDS2 * CFab) ......................... (1)

Where;

WS1 = Weight of Stock 1 = 30%

WS2 = Weight of Stock 2 = 70%

SDS1 = Standard deviation of stock 1 = 39.44%

SDS2 = Standard deviation of stock 2 = 47.29%

CFab = The correlation between stock 1 and 2= 0.4

Substituting all the values into equation (1), we have:

Portfolio variance = (30%^2 * 39.44%^2) + (70%^2 * 47.29%^2) + (2 * 30% * 39.44% * 70% * 47.29% * 0.4)

Portfolio variance = 0.15491445898

The standard deviation of this portfolio can be calculated as follows:

Portfolio standard deviation = (Portfolio variance)^0.5 = 0.15491445898^0.5 = 0.393591741503807, or 39.3591741503807%

Rounding to 2 decimal places, we have:

Portfolio standard deviation = 39.36%

Therefore, the standard deviation of this portfolio is approximately 39.36%.

6 0
3 years ago
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