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
Which statement best summarizes the role of households in the flow of
emmainna [20.7K]

The answer is A

#FreeMelvin

5 0
3 years ago
Read 2 more answers
50 POINTS
ExtremeBDS [4]

A. Early Childhood Development.

8 0
3 years ago
Read 2 more answers
Which set of goals can at times conflict in the short run
kondor19780726 [428]
Correct Answer : C; High employment and price level stability.
7 0
3 years ago
How does a change in a​ country's real exchange rate affect its net​ exports?
Gnom [1K]

Answer: (C) When a​ country's real exchange rate appreciates​, it imports more and exports less​, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

8 0
3 years ago
Bond ratings are significantly based on all of the following EXCEPT:_______.
KiRa [710]

Answer:

c) The current ratio

Explanation:

The current ratio is an example of a liquidity ratio.

Liquidity ratios measure a company's ability to meet its short term obligations.

Current ratio = curernt assets / current liabilities

Return on assets is a profitability ratio. It measures return on investment

The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments

5 0
2 years ago
Other questions:
  • _______ is used to analyze and summarize your data without graphical support.
    12·2 answers
  • Elements within the requirements listing tables that should be reviewed annually under the internal control program will include
    7·2 answers
  • The menu in a franchise restaurant differs from that of an independently owned restaurant in which of the following ways
    5·1 answer
  • Regarding risk levels, financial managers should
    13·1 answer
  • Review the transactions below and select the one that would be journalized in a general journal when specialized journals are us
    9·1 answer
  • The minimum efficient scale is:Group of answer choicesthe minimum output level where the firm’s average total costs are lowest
    11·1 answer
  • a newspaper reports that in urban area the average price of new homes had decreased, but the number sold had increased. The sita
    14·1 answer
  • For bonds issued 2019, the taxpayer must amortize bond premium using which of the following methods?
    14·1 answer
  • On January 1, 2021, Red Flash Photography had the following balances: Cash, $17,000; Supplies, $8,500; Land, $65,000; Deferred R
    12·1 answer
  • What is the primary role of individuals as participants in the money market?
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!