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.
Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year
Answer:
Exxon's response worsened its public standing.
Explanation:
Crisis management is the application of game plan to help an organization deal with a sudden and significant negative event.
The Exxon's response is a perfect example of how company should apply thoughtful response in crisis management because Exxon corporation failed to follow several well-established procedures thereby damaged its public standing, failed to seize control of developments after the spill and sending lower-ranking executive to address the situation instead of the chairman going there himself to take control of the situation in a possible way.
The action taken by Exxon led to the impression that the company disregard pollution problem by not involving top management.
Vertical Integration is the answer
Answer:
the opportunity cost of attending college for one year is $33,000
Explanation:
The computation of the opportunity cost is shown below:
= Full time job + health and retirement benefits
= $20,000 + $5,000 + $8,000
= $33,000
hence, the opportunity cost of attending college for one year is $33,000
We simply added the above 3 items so that the correct value could come
And ignored the college tuition fees
