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
lesya692 [45]
3 years ago
5

As randomly selected securities are combined to create a portfolio, the ________ risk of the portfolio decreases until 10 to 20

securities are included. The portion of the risk eliminated is ________ risk, while that remaining is ________ risk.
a.total; diversifiable; nondiversifiable
b.diversifiable; nondiversifiable; total
c.relevant; irrelevant; total
d.total; nondiversifiable; diversifiable
Business
1 answer:
Leokris [45]3 years ago
6 0

Answer:

a) Total; Diversifiable; Non-Diversifiable

Explanation:

Risk refers to the uncertainty of returns, chances of loss while investment. Securities have risk, their price might fall much, as to incur loss for the security holder.

Diversifiable Risk is the risk component due to features particular to the security, not due to general market situation. Non Diversifiable risk is the risk component due to general economic & market position features, not due to particular to the security.

Securities portfolios are created to diversify the risk. But, this reduces only the diversifiable (security particular) risk. Non Diversifiable (common market) risk is common to all the securities, so it can't be diversified.

Hence, Securities combined to create portfolio : Risk of portfolio by including 10 - 20 securities reduces Total Risk. It eliminates Diversifiable Risk, but the Non Diversifiable Risk still remains.

You might be interested in
While researching the feasibility of converting her company's products to solar energy, Hailie reads several reports on innovati
Marina CMI [18]

Answer:

d. generate her own conclusions and recommendations.

Explanation:

Analyzing the information in the question above, the most suitable option for Hailie's company would be to generate its own conclusions and recommendations, since there are two approaches, positive and negative about innovations in the use of solar energy, so it would be ideal for Hailie to use the approach that best suited her company, for that she could analyze whether the energy benefits for the company's products would meet the high costs and thus draw her own conclusions.

This can also be a strategy for positioning the company that can generate value for stekolhders, since the use of sustainable products and energies is a highly valued issue today, where companies are seen as active agents of social and environmental development and protection.

3 0
3 years ago
What happens when you make a purchase using a credit card?
harkovskaia [24]
It takes ur money out and away
4 0
4 years ago
Read 2 more answers
You manage a hedge fund with $400 million in assets. Your fee structure provides for a 1% annual management fee with a 20% incen
skad [1K]

Answer:

b. $6,600,000

Explanation:

The computation of the fee is shown below:

= Annual management fee  + performance management fee

where,

Annual management fee = $400 million × 0.01 = $4 million

And, the performance management fee

= Incentive percentage × hedge fund × excess return

= 20% × $400 million × 3.25%

= $2.6 million

The excess return is

= {($445 million - $400 million) × $400 million -  8%}

= 11.25%  - 8%

= 3.25%

So, the fee is

= $4 million + $2.6 million

= $6.6 million or $6,600,000

5 0
3 years ago
Which of the following types of business ownership has the highest personal liability risk?
r-ruslan [8.4K]
A. A sole proprietorship <span>is the type of business ownership that has the highest personal liability risk. You are on your own there, and if you make a mistake, the who business fails. </span>
8 0
3 years ago
Read 2 more answers
In outbound telemarketing, the call center employees ________.
Effectus [21]

Answer:

The answer would be D

Explanation:

Outbound Marketing is known as the “old way of doing things, including the use of billboards, television ads, telemarketing, sales staff, direct mail, radio shows, print advertisements. It is not a completely irrelevant marketing strategy, but it depends on what type of business.

New digital ads from friendly social networks are appearing. You will know what I mean when I remind you of all the annoying advertisements that get in the way of reading or seeing what you want online. If you are ignoring them by clicking and closing the window, this is how others do too.

However, many small businesses cannot pay billboards and television reports. However, they can pay for a magazine ad only once in a local publication or a direct mail piece. The latter are very ineffective and are mostly not read and thrown in the trash, since about 44% of all direct mail and publications are thrown away.

As a result of these small outbound marketing strategies they are more accessible and end up costing you more in the short term and with nothing to show. Keep in mind that this type of marketing requires repeated connections.

7 0
3 years ago
Other questions:
  • If the Federal Reserve sells $60,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money suppl
    15·2 answers
  • Using the currently accepted equation, a 70-year-old man might realistically have a maximal heart rate of ________ beats per min
    13·1 answer
  • Which term refers to the practice of revaluing an acquired subsidiary's assets and liabilities to their fair values directly on
    13·1 answer
  • Casonnewton answer this to get your brainliest.
    7·2 answers
  • In the human body, oxygen is absorbed by the lungs and nutrients are absorbed by thesmall intestine. In a single-celled organism
    6·1 answer
  • Alvin had two jobs last year, and he received two W-2 forms. On the first W-2 form, the figure in box 1 was $14,389.26, while on
    13·1 answer
  • The amount of uncollectible accounts at the end of the year is estimated to be $37,500, using the aging of accounts receivable m
    10·1 answer
  • Using the same brand name for different products is an application of which concept from behavioral learning theory?.
    6·1 answer
  • It is very difficult for small businesses to be successful. The Small Business Administration estimates that 20 percent will dis
    7·1 answer
  • A company has net income of $2,800,000. it also has 400,000 weighted-average common shares outstanding and a price-earnings rati
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!