All categories

2 years ago

A portfolio of stocks can achieve diversification benefits if the stocks that comprise the portfolio are ________.

Business

1 answer:

Rudiy272 years ago

7 0

Answer:

Option A is the correct answer.

Explanation:

A portfolio can only achieve diversification benefits if the securities that make up the portfolio are negatively correlated. This is because non-performance of a stock does not affect other stocks negatively. Negatively corrected stocks are the best when it comes to portfolio selection. This will enable the investor to reduce unsystematic risk to the barest minimum.

You might be interested in

A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 35. Which of th

Stella [2.4K]

Answer:

correct option is here B. About 14.3

Explanation:

given data

running sum of forecast errors RSFE = 500

mean absolute deviation MAD = 35

solution

we get here tracking signal that is express here as

tracking signal = $\frac{RSFE}{MAD}$ .................................1

put here value and we will get tracking signal

tracking signal = $\frac{500}{35}$

tracking signal = 14.3

so correct option is here B. About 14.3

4 0

2 years ago

Luis received his account statement. He needs to make sure the balance in his checkbook register is correct. To reconcile his ch

Luden [163]

<span> I would say to add all of the transactions together</span>

8 0

2 years ago

Read 2 more answers

What do you need to make land and natural resources?

svetoff [14.1K]

Answer:

Composta casera : mejora plantas y suelos a costos económicos con materiales accesibles

Coloca una capa de paja de 30 cm de altura a lo largo de la cama y encima restos de jardinería, viruta o aserrín, desechos de hortalizas. ...

Agrega una capa de 15 cm. de restos de comida o de jardinería.

Explanation:

4 0

2 years ago

For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sal

Dmitry_Shevchenko [17]

Answer:

See the attached pictures for detailed answer.

Explanation:

See the attached pictures for explanation.

6 0

2 years ago

When the supply of a commodity decreases while demand remains the same price tends to:_____.

postnew [5]

When the supply of a commodity decreases while demand remains same then the same price tends to increase.

Given that the supply of a commodity decreases while the demand remains same.

We are required to find the effect of decrease of supply on the price of the commodity if the demand remains same.

Supply is the amount of good that the producer manufactures and sends to the market.

Demand is the amount of good that the consumer wants to consume.

When the supply of a commodity decreases,the supply will shift leftwards. The demand remains same then from the graph we can find that the price of the commodity increases from P to P1.

Hence when the supply of a commodity decreases while demand remains same then the same price tends to increase.

Learn more about supply at brainly.com/question/25843620

#SPJ4

3 0

1 year ago