Answer:
Portfolio return = 0.035 or 3.5%
Explanation:
The portfolio return is a function of the weighted average of individual stocks' returns that form up the portfolio. The formula to calculate the portfolio return is as follows,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
- w represents the weight of each stock in the portfolio
- r represents the return of each stock
First we need to calculate the investment of each stock,
Abbott = 200 * 50 = $10000
Lowes = 200 * 30 = $6000
Ball = 100 * 40 = $4000
Portfolio return = (10000 / 20000) * -0.10 + (6000/20000) * 0.20 +
(4000/20000) * 0.125
Portfolio return = 0.035 or 3.5%
Answer:The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance
Explanation:
Stakeholders theory is the theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities such as employees, local market, creditors, supplies and others. The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance
Answer:
Diversification
Explanation:
The key words here are 'several businesses'. A company engage in many businesses in order to mitigate or reduce its business risk, and also to create and add more value to customers. This offers a far advantage position than a stand alone entities who deal with only one product or service.
Answer:
The correct option is D
Explanation:
When there are huge number of the small account balances, then the negative confirmation of the accounts receivable is practical or feasible which is issued by an auditor to the customers of client company and if the combination of the control as well as the inherent risk is low and the individuals who receives the confirmation requests which provide them sufficient consideration.
