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aliina [53]
3 years ago
10

Which of the following choices best completes the following statement? Explain. An investor with a higher degree of risk aversio

n, compared to one with a lower degree, will prefer investment portfolios

Business
1 answer:
Airida [17]3 years ago
6 0

Answer:

(e) none of the above is true.

Explanation:

<u>Note: The question appeared incomplete. Thus, a similar question has been attached for reference purpose and the question has been solved accordingly</u>

A risk averse investor is defined as someone who is unwilling to assume risk in return for a higher return. As we know, higher the risk, higher would be the return.

An investor with higher degree of risk aversion i.e someone who is averse or against assuming any risk would not prefer a riskier portfolio.

Sharpe ratio depicts return which is earned above risk free rate of return, per unit of risk assumed.

A Risk averse investor would prefer investing at a risk free rate of return despite the return being less.

A risk averse investor would prefer investing in govt treasury bills or government treasury bonds which would offer low but assured return with nil risk.

Thus, the correct option is (e) none of the above is true.

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In order to isolate a subset of records from an open form or datasheet that will be needed only temporarily, a set of criteria m
fgiga [73]
Filter is the answer!!!
7 0
3 years ago
Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece
Strike441 [17]

Answer:Yes it should be reported.

$2.8 million should be reported in the the balance sheet as a liability.

Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.

Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.

If the value can be estimated, then the liability has a higher chance of being realised.

Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.

Therefore the $2.8 million liability should be reported in its 2018 balance sheet

6 0
3 years ago
Incremental Analysis for Discontinuation Decision Total Contribution margin lost if special oats is discontinued Less: Fixed cos
Scilla [17]

Incremental Analysis for Discontinuation Decision can have two way affect to the Business

Explanation:

1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues

Less:

2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.

Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.

6 0
2 years ago
Your portfolio has a beta of 1.28. The portfolio consists of 25 percent U.S. Treasury bills, 31 percent Stock A, and 44 percent
Ivanshal [37]

Answer:

2.21

Explanation:

Portfolio beta = Respective beta*Respective weight

<em>Beta of market=1;Beta of risk-free assets=0</em>

1.28 = (0.25*0) + (0.31*1) + (0.44*Beta of Stock B)

1.28 = 0 + 0.31 + 0.44*Beta of Stock B

1.28 - 0.31 = 0.44*Beta of Stock B

Beta of Stock B = 0.97/0.44

Beta of Stock B = 2.204545454545455

Beta of Stock B = 2.21

7 0
3 years ago
Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for
Shtirlitz [24]

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
  • purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
  • the replacement cost of the home is now $300,000

a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

                                                             = \frac{160000}{178000}\times 100

                                                             =   89.89%

Percentage amount covered by the policy

= proportion of the house insured = 89.89%

Amount covered by the policy in dollars

= $20,000 × 89.89%

= $17,978

b

Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss  = current value of the home

= $ 300,000

5 0
3 years ago
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