All categories

3 years ago

True or False: Increasing the number of stocks in a portfolio reduces market risk.

Business

1 answer:

AnnZ [28]3 years ago

6 0

Answer:

Q1 True

Q2 More volatile

Q3 Pherk, Airing, Goohoo, Shexxon

Explanation:

Q1 The reason is that the greater the number of stock in the portfolio the lower is the unsystematic risk associated with the investment because the investor receives an average portfolio of investment.

Q2 The greater are the number of the investments in different stocks the lower are the chances of vulnerability. This means that Portfolio A consist lower number of investments than portfolio B in different companies which means that the return on the portfolio A will be more volatile than portfolio B.

Q3 The investments in different industries is more diversified than the investment made in similar industry. The Pherk, Airing, Goohoo and Shexxon are four different industries which means that the investment in such companies is more diversified than other investments in similar industries.

You might be interested in

If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the b

Llana [10]

Answer:

Explanation:

the face value of the bonds will the value at which bonds payable account enter the accounting. Then, there is a discount which decrease the net value of the bonds:

Bonds Payable 150,000 credit

Discount on bonds 15,000 debit

When the bonds are converted, we will write-off these account against common stock and additional paid-in

To wirte-off the account we need to post them in the other side so we got:

Bonds payable debit 150,000 debit

Discount on bonds 15,000 credit

Common Stock xx credit

Additional paid.in xx credit

These makes option C correct

5 0

3 years ago

The trial balance of ABC Co. does not balance. АВС CO. TRIAL BALANCE JUNE 30, 2019 Debit Credit Cash 0 5740 Accounts Receivable

Vika [28.1K]

Answer:

ill do it of you make it more readable

Explanation:

4 0

4 years ago

Federated investors has a , with each mutual fund being managed by several portfolio managers who together take responsibility f

Archy [21]

Federated investors has a LOAN , with each mutual fund being managed by several portfolio managers who together take responsibility for the fund's performance.

4 0

3 years ago

Liam, the photography editor of a national magazine, is looking through a series of pictures to find a model who seems strong an

lord [1]

Liam should select a model whose face has an angular chin because in the given research of snap judgement about appearance angular chin conveys strong and competent. participants rated a large number of faces along different personality dimensions these two dimension are trustworthiness and dominance.

3 0

3 years ago

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p

ycow [4]

Answer:

6.52%

Explanation:

For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:

Future value = $1,000

Rate of interest = 6.50% ÷ 2 = 3.25%

NPER = 15 years × 2 = 30 years

PMT = $1,000 × 8.25% ÷ 2 = $41.25

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $1,166.09

Now to determine the yield to call we use the RATE formula that is shown in the attachment below:

Present value = $1,166.09

Future value or Face value = $1,120

PMT = $1,000 × 8.25% ÷ 2 = $41.25

NPER = 6 years × 2 = 12 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the bond nominal yield to call is

= 3.26% × 2 years

= 6.52%

8 0

4 years ago