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Whitepunk [10]
3 years ago
15

Diversification is important in investing because…A. It helps you to balance your risk across different types of investments.B.

It increases your overall risk, which guarantees that you will make more money.C. It ensures that you only make low-risk investments.D. It helps you gain the highest rate of return despite any risks.
Business
2 answers:
Phantasy [73]3 years ago
5 0
<span>A. It helps you to balance your risk across different types of investments</span>
Mariulka [41]3 years ago
3 0

Option A is correct.

<u>Diversification is important in investing because it helps you to balance your risk across different types of investments. </u>

Further Explanation:

Diversification: It is a strategy of risk management that involves investing in a variety of investments like bond, stocks, exchange-traded funds, and treasury bills within a portfolio. It helps in the reduction of the unsystematic risk.  

Justification for the correct and incorrect answer:

A.

It helps you to balance your risk across different types of investments: This option is correct.

It helps to spread the risk across different types of investment by building a portfolio that consists of both risky securities like stock and risk-free securities like treasury bills.

B.

It increases your overall risk, which guarantees that you will make more money: This option is incorrect.  

It does not increase the risk because the portfolio includes both risky securities like stock and risk-free securities like treasury bills.

C.

It ensures that you only make low-risk investments: This option is incorrect.

It does not involve investing in only low–risk investments. It aims at building a portfolio that includes both risky securities like stock and risk-free securities like treasury bills and also ensures an individual level of risk is maintained.

D.

It helps you gain the highest rate of return despite any risks: This option is incorrect.

The diversification only spread the risk across different types of investment but does not makes it zero.

Learn more:

1. Legal liability of the business

brainly.com/question/5742225

2. The percentage of sales method

brainly.com/question/12960656

3. The sales budget

brainly.com/question/12985585

Answer details:

Grade: High School

Subject: Business studies

Chapter: Market risk

 

Keywords: Diversification, to balance your risk across different types of investments, increases your risk, make more money, low-risk investments, gain the highest rate of return, it helps you to balance, it ensures that you only, gain the highest rate of return, low-risk investments, overall risk, which guarantees you more money, market risk.

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Weston acquires a new office machine (7-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired
Arturiano [62]

Answer:

The total cost recovery for 2017 is $38,838.75 and The total recovery cost for 2018 is $6457.031

Explanation:

for 2017:

additional first year depreciation = $75,000*50%

                                                       = $37,500

using 7-year MACRS mid quater converntion, the depreciation % for quater 4 is 3.57%

additional MACRS cost recovery = ($75,000 - $37,500)*3.57%

                                                       = $1338.75

total cost recovery for 2017 = $37,500 + $1338.75

                                              = $38,838.75

for 2018, additional first year depreciation is $37,500

using 7-year MACRS mid quarter convention for next year, the depreciation % fpr quarter 4 is 27.55%

the machine sold in september , so it was used for two full quarters and half third quater

the recovery is computed for 2.5 over 4 quarters of a year

additional MARSC cost recovery = $37,500*27.55%*(2.5/4)

                                                       = $6457.031

total recovery cost for 2018 is $6457.031

Therefore, The total cost recovery for 2017 is $38,838.75 and The total recovery cost for 2018 is $6457.031

7 0
3 years ago
Why are differentiation and low cost leadership strategies referred to as generic business strategies? they can be simultaneousl
kumpel [21]
<span>Differentiation and low cost leadership strategies are referred to as generic business strategies due to the fact that they can be used in basically any organization, regardless of the industry.</span>
7 0
3 years ago
Watauga Company purchased equipment on July 1, 2017 for $70,000. Sales tax on the purchase was $700. Other costs incurred were f
andriy [413]

Answer:

$72,700

Explanation:

Data provided in the question:

Purchasing cost = $70,000

Sales tax = $700

Freight charges = $800

Shipping charges = $150

Repair charges = $1,300

Installation cost = $1,050

Now,

Cost of the equipment  

= Purchasing cost + Sales tax + Freight charges + Shipping charges + Installation cost

= $70,000 + $700 + $800 + $150 + $1,050

= $72,700

Note: Repair cost is not included in the cost.

5 0
3 years ago
The opportunity cost of attending college is likely to be highest for a high school graduate Choose one: A who is very intellige
Valentin [98]

Answer:

B. who can immediately take over the family business

Explanation:

<em>Option A</em> is wrong because opportunity cost is not related to intelligence.

<em>Option C</em> is not correct because a high school graduate and a college attending student can access to student loans.

The family's wealth can not be a factor in terms of opportunity cost of attending college or a high school graduate. Therefore, <em>option D</em> is incorrect.

Option B is correct as a college attending student cannot take over the family business. So, it is his opportunity cost. On the other hand, a high school graduate can take over the business.

8 0
3 years ago
Noah drinks Dr. Pepper. He can buy as many cans of Dr. Pepper as he wishes at a price of $0.50 per can. On a particular day, he
Nadusha1986 [10]

Answer:

$0.85 and three cans

Explanation:

Data given in the question

Price per can = $0.50

First can paying price = $0.95

Second can paying price = $0.80

Third can paying price = $0.60

Fourth can paying price = $0.40

So by considering the above information, the noah can buy three cans as the prices are high

So, the consumer surplus is

= First can + second can + third can

where,

First can = $0.95 - $0.50 = $0.45

Second can = $0.80 - $0.50 = $0.30

Third can = $0.60 - $0.50 = $0.10

So, the total consumer surplus is

= $0.45 + $0.30 + $0.10

= $0.85

7 0
3 years ago
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