Question 7 of 10

Diversification tends to increase portfolio performance, because:____.

AfilCa [17]

Answer:

D. A diverse portfolio is more likely to have a stock inside of it that performs amazingly well.

Explanation:

Diversification of portfolio means adding different stocks / shares in investment portfolio.

Option D is correct because when we have different kind of stock, there are chances that if one fails to perform, one can outperform and it is likely to have a stock which can perform amazingly well.

Now we will see that why all the options are incorrect one by one.

option A is not true because it is not necessary that diverse portfolio cannot fail altogether. So it cannot be guaranteed that it will have higher return for sure.

Option B is not true as diverse portfolio cannot have lower volatility if all perform like same.

Option C is also incorrect as correlation is not necessary in diverse portfolio.

5 0

3 years ago

Suppose a firm produces x and y, the firm earns revenues from x=$50000 and revenues from y equal to $ 30000. the own price elast

Olenka [21]

Answer:

If the firm lowers the price of product x by 1%, the change in the total revenues will be <u>$680</u>.

Explanation:

Own price elasticity of demand of a commodity is the degree of responsiveness of quantity demanded of the commodity to a change in its own price. This is given as -2 for commodity x in the question.

The cross price elasticity of demand between any two commodities is the degree of responsiveness of quantity demanded of the first commodity to a change in the price of the second commodity. This is given as -0.6 for between commodity x and y in the question.

Given the information in the question, the change in the total revenues if the firm lowers the price of product x by 1% can be calculated using the following formula:

ΔTR = [(rx * (1 + ex)) + (ry * cexy)] * Δpx ..................... (1)

ΔTR = Change in the total revenues = ?

rx = revenues from x = $50,000

ex = own price elasticity of demand for x is = -2

ry = revenues from y = $30,000

cexy = cross price elasticity of demand between x and y = -0.6

Δp = Change in the price of product x = -1%

Substituting the values into equation (1), we have:

ΔTR = [(50,000 * (1 + (-2))) + (30,000 * (-0.6)] * (-1%)

ΔTR = [(50,000 - 100,000) - 18,000] * (-1%)

ΔTR = [-50,000 - 18,000] * (-1%)

ΔTR = -68,000 * (-1%)

ΔTR = $680

Therefore, if the firm lowers the price of product x by 1%, the change in the total revenues will be <u>$680</u>.

7 0

4 years ago

the design of a service system often is used by management to the cost of capacity in relation to the expected cost of customers

ale4655 [162]

The design of a service system often is used by management to Balance the cost of capacity in relation to the expected cost of customers waiting.

<h3>What is expected cost?</h3>

Expected expenses are the estimates of prices that you enter before you receive the item's invoice, such the price of a purchased item. Both inventories and the general ledger can be updated with predicted costs.

This is what the functionality performs, according to Dynamics NAV help: Expected expenses are the calculations you do before you actually receive the invoice for the item, such as the price of a purchase. Both inventories and the G/L can be updated with predicted costs.

The amount of money held in a financial institution, such as a savings or checking account, at any particular time is known as the account balance. The net amount, which includes all debits and credits, is always the account balance.

When a company or other entity invests money to increase operations or production capacity, it incurs a capacity cost. Costs associated with capacity are a fundamental component of conducting business and are particularly important for start-up and expanding businesses that aim for quick expansion.

Hence, The design of a service system often is used by management to Balance the cost of capacity in relation to the expected cost of customers waiting.

To learn more about expected cost refer to:

brainly.com/question/25799822

#SPJ4

6 0

2 years ago

Read 2 more answers

Rivals would find it difficult to challenge atlas door in the short run because of high threat of substitution. low buyer switch

elena55 [62]

The reason why it is difficult for Rivals to challenge atlas door is probably because of the high threat of substitutes in which the rival fears that the atlas door will replace them and send them off out of the business when they are overpowered by the other party.

8 0

4 years ago

Sardin Company begins the month of March with $17,000 of work in process costs from Job 324. Information from job cost sheets sh

ad-work [718]

Answer:

Sardin Company

a) Calculation of the balances of the work in process:

March April May

Beginning work in process Job 324 $17,000 $20,000 $98,000

Total Ending work in process $20,000 $98,000 $85,000

March April May

Beginning work in process Job 324 $17,000 $20,000 $98,000

Job 324 26,000

Work started Job 325 20,000 28,000 15,000

326 41,000

326 11,000

327 16,000 39,000

328 34,000 51,000

Ending work in process Job 325 (20,000) (48,000)

327 (16,000)

328 (34,000) (85,000)

Total Ending work in process $20,000 $98,000 $85,000

Work completed Job 324 43,000

Job 326 52,000

Job 327 55,000

Job 325 63,000

Total costs of work completed $43,000 $52,000 $ 118,000

b) Calculation of finished goods inventory accounts at the end of May:

March April May

Beginning finished goods $0 $43,000 $52,000

Costs of work completed $43,000 $52,000 $118,000

Finished goods available $43,000 $95,000 $147,000

less Cost of goods sold $0 $43,000 $52,000

Ending finished goods $43,000 $52,000 $147,000

Explanation:

a) Manufacturing Costs Assigned

Job No. March April May

324 $26,000

325 20,000 $28,000 $15,000

326 41,000 11,000

327 16,000 39,000

328 34,000 51,000

4 0

4 years ago