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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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NikAS [45]

Answer:

The dividend yield for Zack Corporation 8%,the first option

Explanation:

The dividend yield is a measure of business performance used by investors which compares the dividend paid by a stock to its market price(price paid by investors to acquire the stock)

dividend per share for Zack Corporation is $3.90

market price per share is $48

dividend yield =$3.90/$48*100=8.13%

The correct option is the first option 8% since the figure above was simply rounded down to whole number

3 0
3 years ago
What is a disadvantage of the payback method?
HACTEHA [7]

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

  1. It is easy to calculate
  2. The cash flows earned after the payback period should not be used
  3. There is no requirement to determine the present value factor for measuring the payback period.
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So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

5 0
3 years ago
Charice wants to send an email to her manager. She has some concerns about the work a coworker is doing. Charice has noticed tha
finlep [7]
The approaches would be the best way for Charice to communicate this to her manager is Send an email to her manager requesting a meeting to talk in person about her concerns. Mark the importance level as high. Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions here.

3 0
3 years ago
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The quantity sold in a market will decrease if the government decreases aA. binding price floor in that market.B. binding price
Pavlova-9 [17]

Answer: B

Explanation:

Price ceiling is the highest authorized price that could be charged by sellers for a good.

Prices received by sellers will be reduced if government would bring down authorized price in the market.

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3 years ago
________ is the extent to which a firm's internal activities encompass one, some, many, or all activities that make up an indust
Alecsey [184]

Answer:

BE Scoping strategy CC Horizontal scope D.A)Horizontal installation.

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3 years ago
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