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Inessa [10]
2 years ago
7

Maximum diversification benefit can be achieved if one were to form a portfolio of two stocks whose returns had a correlation co

efficient of:
-1.0



+1.0



0.0



none of the above
Business
1 answer:
lisov135 [29]2 years ago
4 0

Answer:

-1.0

Explanation:

Diversification in a portfolio refers to spreading investments in such a way so as to minimize risk.

The correlation coefficient r between two securities signifies how return from one security is related with another security. For example, two securities of the same sector may move in the same direction or positively correlated as in if price of one rises, the price of other rises too maybe not by the same margin.

In case of a negative correlation, the security returns move in opposite directions i.e the securities are least related to one another.

Maximum diversification is achieved when r is equal to -1 i.e the two stocks move in opposite direction by the same magnitude.

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D is the correct answer
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Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. The contract indicates that
andre [41]

Answer:

D) ​F.O.B.

Explanation:

Based on the scenario being described within the question it can be said that the included term would be F.O.B. This is a contractual term meaning Free on Board, and immediately specifies that the seller will deliver the goods at their own cost , through a specific route to the destination set forth by the buyer. Once the goods arrive the responsibility is no longer the sellers.

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3 years ago
Line graph labeled Business Cycle. Curve rises, falls, rises again, and begins to fall again. Point A marks top of first curve.
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The part of the business cycle given that shows a period of contraction is <u>Point B. </u>

<h3>Why does point B show contraction?</h3>

When the economy is in a period of contraction, the business cycle would show a fall from the peak to the trough.

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In conclusion, option B is correct.

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5 0
1 year ago
If the money supply is $6,000, velocity is 5, and Real GDP is 10,000 units of output, then the price level is _____________. If
atroni [7]

Answer and Explanation:

The computation is shown below:

The Price level in the normal case

= Money supply ÷ Real GDP × Velocity

= $6,000 ÷ 10,000 units × $5

= $3

Now in the case when the money supply doubled i.e $12,000

So, the price level is

= Money supply ÷ Real GDP × Velocity

= $12,000 ÷ 10,000 units × $5

= $6

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8 0
3 years ago
Pearl Company began operations on January 2, 2016. It employs 12 individuals who work 8-hour days and are paid hourly. Each empl
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Answer and Explanation:

Pearl Company Journal entries

Account Titles and Explanation Debit Credit

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Dr Salaries and wages expense

(12 x 8 x 13 x $13) 16,224

Cr Salaries and wages payable 16,224

Dr Salaries and wages expense

(12x 8 x 8x $13) 9,984

Cr Salaries and wages payable 9,984

Dr Salaries and wages payable

(12x 8 x 5x $13)6,240

Cr Cash 6,240

2017

Dr Salaries and wages expense

(12 x 8 x 13 x $15) 18,720

Cr Salaries and wages payable 18,720

Dr Salaries and wages expense

(12x 8 x 8x $15) 11,520

Cr Salaries and wages payable 11,520

Dr Salaries and wages expense 2,304

Dr Salaries and wages payable

(12 x 8 x 12 x $13) 14,976

Cr Cash

(12 x 8 x 12 x $15) 17,280

Dr Salaries and wages expense 576

Dr Salaries and wages payable

(12 x 8 x 3x $13)+(12 x 8 x 5x $15) 10,944

Cr Cash (12 x 8 x 8 x $15) 11,520

8 0
2 years ago
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