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Helen [10]
3 years ago
15

​Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are ________ and i

ts individual stock returns have _______ correlations.
Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

​Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are high and its individual stock returns have high correlations.

Explanation:

In Modern Portfolio Theory (MPT), the individual behavior of each investment is viewed and evaluated based on how it affects the overall portfolio's risk and return. For this particular case, all <em>individual stock volatilities</em> are <u>high</u>, which means the <em>overall portfolio volatility</em> is <u>high</u> as there is no <em>diversification</em>. Adding to that, having <em>highly correlated</em> stock return increases the volatility of the portfolio even more, as there is a higher chance of them all declining at once.

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An increase in the rate of expected inflation will Group of answer choices shift the demand for loanable funds to the left (down
Brums [2.3K]

Answer:

shift demand and supply for loanable funds to the right (up), increasing interest rates.

Explanation:

According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.

As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.

Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out

4 0
4 years ago
In texas, the dual budgeting system consists of separate budgets from which two groups?
Ilya [14]

In Texas, the dual budgeting system consists of separate budgets from The legislative and executive branches. This is further explained below.

<h3>What is a dual budgeting system?</h3>

Generally, Both the legislative and executive arms of government in Texas are responsible for creating their own budgets under the state's dual budgeting system.

In conclusion, Therefore, the dual budget process offers a division of tasks that often has more to do with historical structures, political goals, prospective funding sources, and institutional capabilities than with the actual nature and purpose, including accurate description, of the expenditures themselves.

Read more about the dual budgeting system

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8 0
2 years ago
Your uncle has said that if you agree to finish college he will give you equal payments of $2,000 at the end of each year for th
il63 [147K]

Answer:

the value of the payments today is 14,047

Explanation:

this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the present value of future payments affected by an interest rate. by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

a_{10} =2,000*\frac{1-(1+0.07)^{-10} }{0.07}

a_{10} =14,047

5 0
3 years ago
Which might be an oppotunity cost of the city of aloharetta decision to construt the gateway and green way projects
nirvana33 [79]

An opportunity fee of the metropolis of Alpharetta's choice to construct the gateway and green way tasks: adopted in 2015, the plan proposes a series of small parks and inexperienced spaces that connect to each different, and could help make Downtown Alpharetta amusing.

Alpharetta is a town placed in northern Fulton County, Georgia, USA, and is part of the Atlanta metropolitan region. As of the 2010 census, Alpharetta's populace became 57,551. The populace in 2020 became 65,818. Alpharetta is a colorful Southern city with a great nice of lifestyles, making it a super region to live, paint and visit.

Alpharetta is a city in Georgia with a population of 66,566. Alpharetta is in Fulton County and is one of the best locations to stay in Georgia. dwelling in Alpharetta gives citizens a dense suburban feel and maximum citizens very own their houses. In Alpharetta, there are a whole lot of restaurants, espresso stores, and parks. Alpharetta is now Georgia's twelfth most populous town, boasts some of the great schools in the USA, and is understood far and extensive because of the generation metropolis of the South because of the huge quantity of tech-focused organizations that call Alpharetta home.

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8 0
1 year ago
The home health nurse performs an assessment on a client who had cardiac surgery 10 days ago. The client states, "I get dizzy in
Korvikt [17]

Answer:

The correct answer is: The temperature of the water of the client's shower.

Explanation:

Vasodilation is the widening of blood vessels as a result of an increase in blood flow to tissues when they are needed in the organism. It can be provoked because of <em>alcohol abuse, too much exercise, </em>or <em>too warm temperatures</em> and typically have dizziness for symptoms.

Thus, <em>the home health nurse should regulate the patient's shower water temperature</em>.

5 0
3 years ago
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