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Kipish [7]
3 years ago
9

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning s

tocks, but as a general rule it will not be possible to eliminate all diversifiable risk.
True/False
Business
1 answer:
dimulka [17.4K]3 years ago
5 0

Answer:

The given statement is True.

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all market risk.

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Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is
Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0
3 years ago
Effective decision makers are able to ______.
bixtya [17]

Answer:

E

Explanation:

all of those statements seem valid about being an effective decision maker

5 0
3 years ago
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20. Which of the following is correct? a) A company’s book value reflects the company’s history of equity investment and retaine
diamong [38]

Answer:

a. A company's book value reflects the company's history of equity investment and retained earnings; a company's market value reflects investor's view of the company's future earning prospects.

Explanation:

The book value of a company is the residual equity and retained earnings after all liabilities paid. Market value is the view of investor's about the company and is what the company would be worth if it were to be sold.

7 0
3 years ago
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Raul, a salesperson for the lovely landscapes landscaping company, is working with a longtime customer who is interested in eith
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The answer is contingency design. It is the sum incorporated into a development spending plan to take care of extra expenses for conceivable outline changes. The measure of possibility fluctuates with the phases of outline. As the plan is finished, the possibility ought to be diminished to almost zero for most school ventures.
7 0
3 years ago
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following
SVETLANKA909090 [29]

Answer and Explanation:

The computation is shown below:

1. Times interest earned ratio is

= Earning before interest and taxes ÷ Interest expense

= $19,200 ÷ $940

= 20.4

2. And, the Debt to equity ratio is

= Total Liability ÷ Total stockholder's equity  

= $30,180 ÷ $55,872  

= 0.54

We simply applied the above formulas so that the  financial ratios for long-term creditors could come

8 0
3 years ago
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