Answer:
C. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate.
Explanation:
Portfolio diversification gives more security to a portfolio, which expected to results in a decreasing rate of total risk.
The portfolio which is diversified carries the co-variance measure of risk. It has the property of reducing the risk as it diversifies the portfolio to a great extent.
It reduces the overall risk by diversifying the assets i.e. stock , bonds, commodities etc.
Hence, the most appropriate answer is option C.
Yes he should be because people had higher expectations
Answer:
The correct answer is $132,664.89.
Explanation:
According to the scenario, the given data are as follows:
Present value (PV) = $50,000
Rate of interest (r) = 5%
Time period (n) = 20 Years
So, we can calculate future value by using following formula:
Future value = PV × (1 + r)^(n)
= $50000 × ( 1 + 5% )^20
= $50000 × (1 + 0.05)^20
= $132,664.89
Hence, After 20 years land will be worth $132,664.89.
Answer:
29,143
Explanation:
Profit target = 25% on sales
Fixed cost = $51,000
Variable cost = $9.50 per unit
Sales price per unit = $15
To achieve profit target, let the number of units sold be y
Total sales = 15y
Total variable cost = 9.5y
Profit = 0.25 × 15y
= 3.75y
Sales - Cost = profit
15y - (51000 + 9.5y) = 3.75y
15y - 9.5y - 3.75y = 51000
1.75y = 51000
y = 51000/1.75
y = 29143
29,143 bears must be sold to meet the profit goal.
