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Nat2105 [25]
3 years ago
9

The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that: var

y proportionally with the rest of the portfolio. are largely uncorrelated with the rest of the portfolio. vary directly with the rest of the portfolio. are perfectly correlated with the market portfolio.
Business
1 answer:
AnnZ [28]3 years ago
3 0

The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.

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Answer:B

Explanation:

Both technician A and B are correct

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Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima
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Answer:

3. Correctly ignored a sunk cost

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Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

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In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

8 0
3 years ago
When Scott says, “Human resources is one of the most important things we do in our business,” what is he referring to?
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6 0
3 years ago
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Answer:

See below

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Donations received are equivalent to 'income' to the business. They add to equity. An increase in equity/capital accounts is credited.

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3 years ago
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