All categories

3 years ago

Diversification cannot reduce market risk. a. true b. false

1 answer:

4 0

B. False. Risk can never be eliminated completely. You can reduce risk associated with individual stocks, but not general market risk. Hope this helps :)

You might be interested in

People are unlikely to buy Big Macs in the places where they are relatively cheap (according to purchasing power parity) and sel

Natali5045456 [20]

People will buy at places that are cheap and sell at more expensive prices because:

The transactions costs would be too high.
There's little resale market for used Big Macs.
They would be expensive to transport.
They're perishable.

<h3>What is transactions cost?</h3>

Transactions cost simply mean the expenses that are incurred when one buys or sells a particular product.

In this case, the above options are the reasons why people are unlikely to buy Big Macs in the places where they are relatively cheap according to purchasing power parity.

Learn more about transactions cost on:

brainly.com/question/1405573

7 0

3 years ago

If Sue has a contribution margin per unit of $5, which of the following unit price and unit variable costs would apply

Mumz [18]

Answer:

<u>The correct answer is D. Unit Price of US$10, Variable unit costs of US$5.</u>

Explanation:

1. Let's remember the definition of contribution margin.

The contribution margin of any company is the difference between sales volume and variable costs. Or to put it other words: the contribution margin is the benefits of a company, regardless of fixed costs.

Fixed costs are costs that don't vary with the volume of production. Some examples are rent, some insurances and salaries. Variable costs, on the other hand, are those that change with a variation in the volume of production.

Contribution margin = Sales - Variable costs

2. Let's find out the unit price and the variable costs, if the contribution margin of Sue is US$ 5 per unit:

Option A: Price per unit = US$ 5 and Variable costs = US$ 10.

So, the contribution margin is 5 - 10 = - 5. These values don't apply to Sue's business.

Option B: Price per unit = US$ 10 and Variable costs = US$ 10.

So, the contribution margin is 10 - 10 = 0. These values don't apply to Sue's business.

Option C: Price per unit = US$ 20 and Variable costs = US$ 10.

So, the contribution margin is 20 - 10 = 10. These values don't apply to Sue's business.

<u>Option D: Price per unit = US$ 10 and Variable costs = US$ 5. </u>

<u>So, the contribution margin is 10 - 5 = 5. These values apply to Sue's business.</u>

4 0

3 years ago

What are the roles of consumers? select two options.

swat32

Answer:

im new here

Explanation:

were are you from

8 0

3 years ago

At December 1, 2017, Swifty Corporation Accounts Receivable balance was $12770. During December, Swifty had credit sales of $342

Nat2105 [25]

Answer:

a) $19610 credit

Explanation:

Given: Accounts receivables as on Dec 1, 2017 = $12770

Credit sale during the month = $34200

Collections during the month = $27360

Accounts Receivable balance at the end of the month = Opening Accounts Receivable balance + credit sales during the month - cash collected during the month

= $12770 + $34200 - $27360

Accounts Receivable balance as on Dec 31, 2017 = $19610 credit

4 0

3 years ago

What is the total of tim’s liabilities if he has recorded $50,000 in assets and $40,000 equity on a balance sheet?

miss Akunina [59]

Total assets = Total liabilities + Total stockholders' equity

Total liabilities = Total assets - Total stockholders' equity

Total liabilities = $50,000 - $40,000

Total liabilities = $10,000

Hence, the total of Tim's liabilities is $10,000.

Responsibility is the responsibility of the individual or company and is usually the amount. Debts are settled over time by the transfer of economic interests, including money, goods, or services. The liabilities shown on the right side of the balance sheet include loans, liabilities, mortgages, income receivable, borrowings, guarantees, and accrued expenses.

Liability can be compared to assets. Debt is what you owe or owe. An asset is something you own or owe. In general, liability is an obligation between one party and another that has not yet been exempted or paid. In the accounting world, financial liabilities are also obligatory but are more likely to be defined by past commerce, events, sales, asset or service exchanges, or those that will generate economic benefits in the future.

Learn more about Liability here: brainly.com/question/24534918

#SPJ4

7 0

2 years ago