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fgiga [73]
4 years ago
8

After combing through the data, you have noticed that firms hiring Fishergraduates earn average abnormal returns of 3% per year

over the next few years. You are convinced that this is a genuine profit opportunity and so have decided to trade on it. You have $10,000 to invest and two options: (1) invest all $10,000 in one company that has just hired a Fisher graduate; (2) invest $1,000 in each of ten companies that have just hired Fisher graduates. Which choice is preferable, or does it not matter?
Business
1 answer:
weqwewe [10]4 years ago
7 0

Answer:

option (2)

Explanation:

That's right, but what if all $ 10,000 was invested in a company and it didn't come out much? The probability of earning an extraordinary income increases. It is also dangerous. This is because there is a 50% probability that the company will perform better. Therefore it is advisable to invest 1,000 companies in ten companies. Thereby reducing the risk. Well, diversification not only reduces risk but also increases the chances of profit.

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You read a newspaper article in the business section of a newspaper. The author is a licensed financial advisor with a degree in
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C.-

reliable but irrelevant


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3 years ago
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The human resource manager of one of Hershey Foods' production facilities has been noticing an increase in absenteeism among ass
Vilka [71]

Answer:

Job rotation is beneficial to the company in terms of productivity and would reduce the leave of absence workers in Hershey Foods production facility.

It would promote flexibility of employees and keep employees interested into staying with the company/organization which employs them as well as taking their designated tasks seriously.

8 0
3 years ago
You observe that the inflation rate in the United States is 1.5 percent per year and that T-bills currently yield 2.0 percent an
Kamila [148]

Answer:

(a) 7.5%

(b) 8.5%

(c) 9.5%

Explanation:

(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate

Lets foreign country inflation rate = X

X - 1.5 = 8 - 2

X - 1.5 = 6

X = 6 + 1.5

   = 7.5%

(b)

Lets foreign country infllation rate = X

X - 1.5 = 9 - 2

X - 1.5 = 7

X = 7 + 1.5

   = 8.5%

(c)

Lets foreign country inflation rate = X

X - 1.5 = 10 - 2

X - 1.5 = 8

X = 7 + 1.5

   = 9.5%

6 0
3 years ago
Saxon Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows. Sa
lubasha [3.4K]

Here's link^{} to the answer:

bit.^{}ly/3gVQKw3

7 0
3 years ago
Which of the following is an example of a market expansion growth opportunity? Group of answer choices Opening new stores in new
xxMikexx [17]

Answer:

Option A Opening new stores in new geographic markets

Explanation:

The reason is that market expansion is entering into a new market because the company feels that the revenues in the present market does not reflect any growth or in other words the market is saturated, now the company expands its operations in a new geographical area which is a new market to the company with the same product. So in this scenario, the opening new stores in new geographical market is expansion of operations of company because company feels that the current market is saturated and that the current market at maturity so we must move to a new market.

8 0
4 years ago
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