1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rama09 [41]
3 years ago
15

Diversification works because:I. unsystematic risk exists.II. combining stocks into a portfolio reduces the standard deviation o

f each stock in the portfolio.III. firm-specific risk can be dramatically reduced if not eliminated.A) I onlyB) III onlyC) I and II onlyD) I and III onlyE) I, II, and III
Business
1 answer:
DaniilM [7]3 years ago
4 0

Answer:

D) I and III only.

Explanation:

II is false because the standard deviation of each stock is an inner characteristic of the stock and cannot be affected by combining it with other stocks in an investment portfolio. I. is true because each stock risk answer to the sector risk and company risk essentially, and by having stock of different sectors and companies is expected that unsystematic risks as these are off-setted. By having a portfolio with wide not-correlated stocks is expected that the risk can be reduced dramatically.

You might be interested in
Alex is at the hardware store comparing different types of piping for a repair in his home kitchen. He can choose between copper
SIZIF [17.4K]

Answer:

D. Copper is a scarce resource, which increases its value.

Explanation:

Scarcity determine how much a certain type of resources is available. When the resources become less available, The price of that resources tend to increase.

Since producing copper is way harder than producing plastic, Producer needs a way to accommodate the bigger efforts that they need to make to produce the copper. This justify  why the price of copper is higher.

5 0
3 years ago
Read 2 more answers
Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and ending balances in the prepaid
yan [13]

Answer:

The correct option is $457

Explanation:

The amount of cash paid in respect of insurance for the current period can arrived at using the below proforma or format:

Insurance  expense in the year                                   $477

less insurance prepaid in the previous year                 ($50)

add insurance prepaid this year                                     $30

Cash paid for insurance in the current year                $457

It is important to note that the question required actual cash paid in respect of insurance in the current year,full knowing that the beginning balances in prepayment was paid for last year implies that it should be deducted and the other way round for the closing insurance prepayment this year

7 0
3 years ago
Situation 22-4 Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $200,000 in total revenues and paid $1
prisoha [69]

Answer:

Economic profit= $25,000

Explanation:

Giving the following information:

Last year he earned $200,000 in total revenues and paid $125,000 to his employees and suppliers.

Job offer= $50,000 per year

The economic profit takes into account the opportunity cost of other options.

Economic profit= 200,000 - 125,000 - 50,000

Economic profit= $25,000

4 0
3 years ago
An industry comprised of a very large number of sellers producing a standardized product is known as:
mash [69]

Answer:

The appropriate response is "Pure competition".

Explanation:

  • Pure competition seems to be an economically efficient circumstance where there is already a massive quantity of international customers and retailers as well as the manufacturer would be ready for deployment.
  • Even though both a significant quantity of products as well as extremely similar or defined consumer items seem to be characteristics of pure competition.
5 0
2 years ago
Seeking to obtain as high a financial return on their investments (ROI) as possible, firms will often set __________ goals
Llana [10]

Answer:

Profit

Explanation:

Profit goals is very essential in business in order to meet the set target. It is important to set a profit goals under to have a good returns for the business as well as the investors involved, it gives an insight to device the best strategy for great returns financially. theoretically, profit goals= summation of all sales / Units of sales

It should be noted that Seeking to obtain as high a financial return on their investments (ROI) as possible, firms will often set profit goals.

7 0
3 years ago
Other questions:
  • "johnson corp, is selling based on marginal cost pricing. if the marginal cost of producing good a is twice that of b, what is t
    15·1 answer
  • An apparel company with a weaving department, a dyeing department, and a stitching department is using a _____ to organize its f
    14·1 answer
  • Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 29,000 $ 31,
    12·1 answer
  • An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that
    5·1 answer
  • David Company uses the gross method to record sales made on credit. On June 10, 2017, it sold goods worth $250,000 with terms 2/
    7·1 answer
  • Pascarelli Corporation’s inventory at the end of Year 2 was $132,000 and its inventory at the end of Year 1 was $160,000. Cost o
    6·1 answer
  • What are the four phases of the business cycle? How long do business cycles last? Why does the business cycle affect output and
    11·1 answer
  • Use the following information to answer this question.
    10·1 answer
  • When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of: a. increasing
    7·1 answer
  • Gracie is African American and has applied for a management job at Big Box Store (BBS), a large corporation. BBS has a workforce
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!