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2 years ago

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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Growers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B

77julia77 [94]

Answer:

Grower Mart

Explanation:

("FOB shipping point" or "FOB origin")is a term that stands for from the point of origin. This means that the buyer incur any risk and takes delivery of the goods once the seller ships the goods. The supplier records it as a sale at the point of departure from its shipping dock. meaning that the purchaser pays the shipping cost from the factory or warehouse and gains ownership of the goods as soon as it leaves its point of origin.

When the term "F.O.B. Hilltop Farms" it means it is from the point of origin

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3 years ago

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual con

Ierofanga [76]

Answer:

(a) This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to DECREASE and the level of investment spending to INCREASE.

The supply of loanable funds will increase, therefore, the equilibrium price (interest rate) will decrease.

(b) An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.

The repeal of the previously existing tax credit causes the interest rate to DECREASE and the level of investment to DECREASE.

The demand of loanable will decrease, therefore, decreasing the equilibrium price (interest rate).

(c) Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.

(d) This change in spending causes the government to run a budget SURPLUS, which INCREASES national saving.

(e) This causes the interest rate to DECREASE, and the level of investment spending to INCREASE.

Since the government has extra money, it can use it to pay existing debts or finance themselves without having to issue new debt. Since the demand for loanable funds decrease, the interest rates will fall.

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3 years ago

Carla Vista Co. reports a taxable and pretax financial loss of $850000 for 2018. Carla Vista's taxable and pretax financial inco

grin007 [14]

Answer:

$255,000

Explanation:

Given that,

2016:

Taxable and pretax financial income = $850,000

Tax rate = 30%

2017:

Taxable and pretax financial income = $850,000

Tax rate = 35%

Income tax refund receivable in 2018:

= Taxable and pretax financial loss in 2018 × Tax rate in the year 2016

= $850,000 × 30 percent

= $255,000

Note:

(i) The carry back provision allows losses to be carried back to preceding 2 years, with the amount of net loss being applied to earliest year first.

(ii) 2018 net loss should be applied to income of 2016 first.

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3 years ago

Roger is almost done with his feasibility study and is concerned about the financing. Up until this point, he has been operating

Andrews [41]

Answer:

True

Explanation:

Hope this helps.

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2 years ago

Is the grouping of jobs into working units usually called units, groups, or divisions.

lisabon 2012 [21]

Answer:

units is the closest thing

Explanation:

it's usually called departmentalization but units is the next thing

6 0

2 years ago

Read 2 more answers