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DENIUS [597]
3 years ago
13

A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li

kely to have the smallest standard deviation: A portfolio containing Microsoft, Apple, and Google stock A portfolio containing only Microsoft stock A portfolio consisting of about three randomly selected stocks from different sectors
Business
2 answers:
Ostrovityanka [42]3 years ago
6 0

Answer:

The answer is A portfolio consisting of about three randomly selected stocks from different sectors.

Explanation:

Standard deviation simply means the amount or the percentage that the portfolio may change in response to a shift in the market.

The best way to have a small standard deviation is by investing in different sectors rather than in one sector. This strategy is called diversification and it's a great way to mitigate risk.

sweet-ann [11.9K]3 years ago
3 0

Answer:

C. A portfolio consisting of about three randomly selected stocks from different sectors

Explanation:

Standard deviation helps measure risks. It determines market volatility or the spread of asset price from their average price. When the volatility of prices are rapid, standard deviation becomes high which in turn means investment is risky and vice versa. Diversification of investment tend to reduce risk. A portfolio containing a diversified randomly selected stock from three sectors would have a lower standard deviation (risk) than the other portfolios stated in the question.

Diversification is a form of risk management.

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The trading bloc consisting of 28 trading partners in europe is the ____.
Murljashka [212]
The trading bloc consisting of 28 trading partners in Europe is the EUROPEAN UNION. European Union is a political and economic alliance among 28 countries members that located primarily in Europe. Some of the members are: Germany, Poland, Italy, United Kingdom, France, Belgium, Netherlands, etc.
5 0
3 years ago
Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $551,000, and fixed costs are $207,000. How mu
MAVERICK [17]

Answer: a.$10,904 increase

Explanation:

Operating income before sales increase:

= Sales - Variable costs - Fixed costs

= 551,000 - (71% * 551,000) - 207,000

= -$47,210

Operating income after sales increase:

Sales increases to:

= 551,000 + 37,600

= $588,600

= 588,600 - (71% * 588,600) - 207,000

= -$36,306

Difference:

= -47,210 - (-36,306)

= Increase of $10,904

7 0
3 years ago
Blanchard and Hersey's Situational Leadership style used which two dimensions to determine employee readiness?
Darya [45]

Answer:

According to Hersey and Blanchard, readiness refers to "the extent to which a follower has the ability and willingness to accomplish a specific task" (1988, p. 174). The two dimensions composing employee readiness are willingness and ability related to a specific task.

3 0
3 years ago
Choose all that apply. Select all the responsibilities of consumers. Gather information about products and services before makin
jolli1 [7]

Answer:

Stay informed about products that you buy to be aware of product recalls.

Gather information about products and services before making a purchase to be aware of price, quality, and the product specifications.

Read instructions on products and use them as intended.

Take action and report faulty products, fraudulent activity, and any other violation of consumer rights.

Consider the impact of your purchases on others and choose products that do not harm the environment.

Insist on compensation if you are not satisfied with your purchase.

8 0
3 years ago
The Securities Act of 1933 does not apply to the issuance of securities under $5 million. Question 4 options: True False
kogti [31]

Answer:

False

Explanation:

The Securities Act of 1933 requires the registration of all the securities issued and sold ob public markets. This act had some exemptions:

  1. private offerings (if the securities were offered to a certain group of persons and/or institutions)
  2. offerings of a limited size: a very small issuance would be excluded, but remember that $5 million of 1933 are equivalent to more than $98 million today (average annual inflation of 3.48%)
  3. securities issued by government entities
  4. securities issued on intrastate offerings (only traded within a given state)

3 0
3 years ago
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