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solmaris [256]
2 years ago
11

Which statement about portfolio diversification is correct?

Business
1 answer:
mario62 [17]2 years ago
8 0

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.

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Roman owns shares in a company called Copnay Telecom Inc.The company's financial performance has been declining over the past fe
docker41 [41]

Answer: D. Transferability of investor ownership.

Explanation:

From the question, we are informed that Roman owns shares in a company called Copnay Telecom Inc. and that the company's financial performance has been declining over the past few months, and the value of its stock has been decreasing.

We are further told that Roman wants to proactively cut his losses and therefore sells his shares and that Jeremy, a trading enthusiast, buys shares in Copnay Telecom because he believes that the share prices cannot go anywhere but up.

The characteristics of a public stock company that this scenario best exemplify is transferability of investor ownership. This was illustrated when Roman transferred his ownership to Jeremy.

3 0
3 years ago
Asteroid Industries accumulated the following cost information for the year:
chubhunter [2.5K]

Answer:

Factory overhead= $22,900

Explanation:

Giving the following information:

Direct materials $15,200

Indirect materials 3,200

Indirect labor 7,700

Factory depreciation 12,000

Direct labor 36,200

<u>Factory overhead is all the indirect costs related to production. In this case:</u>

Factory overhead= indirect materials + indirect labor + factory depreciation

Factory overhead= 3,200 + 7,700 + 12,000

Factory overhead= $22,900

5 0
2 years ago
If overnight delivery makes you think of FedEx, what marketing strategy caused that association in your mind?
Lubov Fominskaja [6]
I Think it’s direct Mail I hope it helps
8 0
3 years ago
Read 2 more answers
The cost method that will yield an ending inventory value that is somewhere between possible high and low costs (prices) using t
o-na [289]

The weighted average cost of capital is the cost approach that will produce an ending inventory value that is in between probable high and low costs (prices) using classic costing methods.

The weighted average cost of capital is the average cost of attracting investors, whether bonds or shareholders.

The computation weights the cost of capital depending on the amount of debt and equity used by the firm, providing a clear barrier rate for internal initiatives or future acquisitions.

The weighted average inventory cost is one of the approaches used in inventory valuation. It is computed by dividing the cost of products for sale by the number of units for sale. i.e The cost of the items for sale and the quantity of units for sale. Because it is based on averages, the ending inventory value is generally somewhere between high and low cost.

To know more about weighted average cost of capital click here:

brainly.com/question/17153162

#SPJ4

8 0
1 year ago
Piedmont Hotels is an all-equity company. Its stock has a beta of .87. The market risk premium is 7.4 percent and the risk-free
vovikov84 [41]

Answer:

12.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4% + 0.87 × 7.4%

= 4% + 6.438%

= 10.438%

The Market rate of return - Risk-free rate of return)  is also known as the market risk premium and the same is applied.

Now the required rate of return would be

= 10.438% + 2.2%

= 12.64%

7 0
3 years ago
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