Answer:
increase in investment = 16,500
Explanation:
Given data:
net income $55 000
Gain $40,000
PATHLON SHARE IN SOPTERON 30%
according to Wquity method, the increase in investment can be determined as following
increase in investment = share of net income - dividend
putting all value to get increase in investment value
increase in investment
= 16,500
Answer:
takes on the shape of an inverted U so related diversification has the best performance.
Explanation:
A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.
The portfolio variance is given by the equation;
Where;
= the weight of the nth security.
= the variance of the nth security.
= the covariance of the two security.
The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.