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
sergey [27]
3 years ago
14

A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li

kely to have the smallest standard deviation: A portfolio consisting of about 30 randomly selected stocks A portfolio containing only Chevron stock A portfolio consisting of about 30 energy stocks
Business
1 answer:
Stolb23 [73]3 years ago
6 0

Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.

Explanation:

A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.

Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.

A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.

You might be interested in
At any given volume, average fixed costs must equal average variable costs<br><br> True or false?
Elanso [62]
False. Average fixed costs are totally different from average variable costs. They can only be equal if by chance the fixed costs are equal to variable costs for a specific level of production
3 0
3 years ago
What are some advantages of interactive media ? Give example. <br> Tks all &lt;3
Helen [10]

i think interactive media is almost every social media but im not 100% sure

4 0
2 years ago
Read 2 more answers
Calculate Payroll An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume th
Ket [755]

Answer:

The correct answer for option (a) is $3,080 and for option (b) is $2,141.

Explanation:

(a). Current pay = $44

After 40 hours, Pay = $44 × 1.5 = $66

So, we can calculate the gross pay by using following formula:

Gross pay = (40 hours × $44 ) + (20 hours × $66)

= $1,760 + $1,320

= $3,080

(b).

Security Tax = Gross pay × 6% =  $3,080 × 6% = $184.8

Medicare Tax = Gross pay × 1.5% =  $3,080 × 1.5% = $46.2

Federal Income Tax = $708

So, we can calculate the net pay by using following formula:

Net Pay = $3,080 - $184.8 - $46.2 - $708

= $2,141

3 0
3 years ago
A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be
Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0
3 years ago
A company began developing computer software to be sold as a separate product on January 1, year 1. During the planning, coding,
svetlana [45]

Answer:

The sofware-relate cost to capitalized will be 1,300,000

Explanation:

<u>The cost than a business can capitalize will stop once the testing phase is complete.</u>

The production cost, are cost of the period. It will not be capitalize through intangible asset software.

<u>Post-implementation.</u> The cost after the implementation of the software will be treated as expenses. The 275,000 maintenance and customer support will not be capitalized. It will be treated as expense

<u></u>

The software amount will be 1,300,000 which is the value of the cost incurred in the testing phases

7 0
3 years ago
Other questions:
  • If there is an increase in market demand in a perfectly competitive market, then in the short run
    7·1 answer
  • Description of the the target market is formed in the___ part of the business plan
    13·1 answer
  • Puvo, Inc., manufactures a single product In which variable manufacturing overhead is assigned on the basis of standard direct l
    7·1 answer
  • Nevada company paid to the state $1,800 in sales tax that it had previously collected from customers. what type of transaction w
    11·1 answer
  • Cash management primarily involves:
    8·1 answer
  • What is meant by requirements gathering, and why is it important to clearly define the data requirements of a database before cr
    11·1 answer
  • Which of the following is true? In a one-shot game, a collusive strategy always represents a Nash equilibrium. A subgame perfect
    14·1 answer
  • Mcgahen Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,080 pa
    7·1 answer
  • Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct
    13·1 answer
  • A(n) ________ is an internet business model that provides an online meeting place where people with similar interests can commun
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!