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3 years ago

Which statement about portfolio diversification is correct?

Business

1 answer:

mario62 [17]3 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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Kiersten and her four siblings are starting their own home design business. One of their primary goals is keeping the loving rel

Leto [7]

Answer:

Correct option is D.

Explanation:

An accurate recommendation of the Act is that <u>there should be discussion and well understood ways that the partners will handle disagreements.</u>

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4 years ago

Exchanging stock or something else for existing debt under Chapter 11 bankruptcy is called: substitution. amendment. composition

belka [17]

The correct answer to the following question is Substitution.

Equity can be defined as the shares or stock that a company issues to the public to get the financing and these stocks represent ownership interest in the company.

Debt can be termed as the amount of money that one party borrows from other party and that has to be paid in future. Almost all companies borrow money from public, or another company or banks to expand their company.

When stocks or anything valuable are exchanged or replaced for one's existing debt , then we call this process Substitution .

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3 years ago

Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one pro

Mars2501 [29]

Answer:

The rate of return did the company make on this product is 61.93%

Explanation:

initial cost = 20000

Annual benefit = 29000

Annual cost = 16000

Salvage value = 10000

t = 5yrs

Let rate of return is I, then at rate of return NPV=0

Present value = -20000 + (29000 - 16000)*(P/A, i, 5) + 10000 (P/F, i, 5)

-20000 + 13000*(P/A, i, 5) + 10000 (P/F, i, 5) = 0

13*(P/A, i, 5) + 10* (P/F, i, 5) = 20

We need to use trail and error method to find rate of return

At = 10%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 55.49

At = 15%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 48.55

At = 25%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 38.24

At = 35%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 31.09

At = 45%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 25.94

At = 55%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 22.11

At = 60%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 20.55

At = 62%, value of expression 13*(P/A, i, 5) + 10* (P/F, i, 5) is 19.98

using interpolation

rate of return = 0.6 + (20.55-20)/(20.55-19.98) * (0.62-0.6)

= 0.6+0.019298

= 0.6193

= 61.93%

Therefore, The rate of return did the company make on this product is 61.93%

8 0

3 years ago

Pitfalls that should be carefully explored before outsourcing include

pentagon [3]

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4 years ago

If you ever need to file for bankruptcy, you should get the help of...

mina [271]

The awnser is A.)
I have done research and all ive seen is to get the court to file bankruptcy

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4 years ago

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