1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jasenka [17]
3 years ago
15

What it is called when someone invests in a variety of places to reduce the overall risk of investing?

Business
1 answer:
bekas [8.4K]3 years ago
6 0

It is called<u> "Asset allocation".</u>


Asset allocation refers to an investment procedure that means to adjust risk and reward by allocating a portfolio's benefits as indicated by a person's objectives, chance resistance and speculation skyline. The three primary asset classes - equities, fixed-income, and cash and equivalents - have diverse dimensions of hazard and return, so each will act distinctively after some time.  

There is no straightforward equation that can locate the right asset allocation for each person. In any case, the accord among most money related experts is that benefit distribution is a standout among the most vital choices that investors make.

You might be interested in
True or false: A put bond allows the holder to force the issuer to buy the bond back at a stated price.
katovenus [111]

The statement that a put bond allows the holder to force the issuer to buy the bond back at a stated price is: True.

<h3>What is a Put Bond?</h3>

A Put Bond is a debt instrument that gives the holder access to repurchase the security within a specific period before the due date. The individual repurchasing sets his price at a given time of issuing the card per value of the bond.

A put bond therefore gives access or allows the Holder to force the issuer to repurchase the bond back at a stated price.  

Learn more about Put Bond here:

brainly.com/question/25596583

5 0
3 years ago
The journal entry to record the purchase of materials on account in process cost accounting is a(n): Multiple choice question. i
Lilit [14]

The journal entry to record the purchase of materials on account in process cost accounting is an Increase in assets and an increase in liabilities. Option A. This is further explained below.

<h3>What is a journal entry?</h3>

Generally, In process cost accounting, a rise in assets and an increase in liabilities are recorded in the journal entry for the purchase of materials on account.

In conclusion, A journal entry is a kind of entry that is used in the accounting records of a company to record a transaction that occurred inside the company.

Read more about the journal entry

brainly.com/question/15889958

#SPJ1

7 0
2 years ago
When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls and fewer adidas soccer balls. Which of the f
Andreyy89

Answer:

The Substitution Effect

Explanation:

Substitute goods are those goods which can be used as perfect replacement for one another to satisfy a want.

There is a direct relationship between price of a good and the demand of it's substitute. So when price of a good falls, the quantity demanded of it's substitute falls and vice versa keeping factors affecting demand other than price as constant.

Similarly, in the given case, Nike and Adidas soccer balls are perfect substitute products. So when price of Nike fell, its quantity demanded increased while the quantity demand for Adidas soccer balls reduced.

8 0
4 years ago
Read 2 more answers
Eaton Electronic Company’s treasurer uses both the capital asset pricing model and the dividend valuation model to compute the c
Montano1993 [528]

Answer:

Ki = 0.063 or 6.30%

Explanation:

The CAPM or Capital asset pricing model is an approach to calculate the required rate of return of a stock. The required rate of return or cost of equity is the minimum return required by the investors o invest in a stock based on the systematic risk of the stock. The formula to calculate the required rate of return of a stock using the CAPM is,

Ki = Rf + β * (Km - Rf)

Where,

  • Rf is the risk free rate
  • β is the beta of the stock
  • Km is the expected return on the market

Ki = 0.03 + 1.1 * (0.06 - 0.03)

Ki = 0.063 or 6.3%

4 0
3 years ago
Which of the following is an example of an activity undertaken by an​ entrepreneur? A. being promoted to the position of Chief o
luda_lava [24]

Answer:

C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

5 0
4 years ago
Other questions:
  • Assume the owners of the only gambling casino in wisconsin spend large sums of money lobbying state government officials to prot
    15·1 answer
  • On January 1, 20X1, Jennifer purchases common stock of Gamma Corporation for $100,000. During the year, Gamma Corporation stock
    13·1 answer
  • I always make a detailed plan before I begin any job
    5·2 answers
  • Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:
    8·1 answer
  • 1. What do we mean by the term “global business”?
    10·1 answer
  • The following information is available for a company's utility cost for operating its machines over the last four months. Month
    12·1 answer
  • Stock A has a beta of .5, and investors expect it to return 5%.
    8·1 answer
  • What is the money called that you can be charged on a borrowed amount?​
    13·1 answer
  • Kevin announces that starting next financial year, 25% of his team members' salaries will depend on their performance. His team
    7·1 answer
  • The envrionmental disadvanteges associated with natural gas include : ____________
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!