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tiny-mole [99]
3 years ago
10

Which of the following statements is CORRECT?a. When diversifiable risk has been diversified away, the inherent risk that remain

s is market risk, which is constant for all stocks in the market.b. Portfolio diversification reduces the variability of returns on an individual stock.c. Risk refers to the chance that some unfavorable event will occur, and a probability distribution is completely described by a listing of the likelihoods of unfavorable events.d. The SML relates a stock's required return to its market risk. The slope and intercept of this line cannot be controlled by the firms' managers, but managers can influence their firms' positions on the line by such actions as changing the firm's capital structure or the type of assets it employs.e. A stock with a beta of -1.0 has zero market risk if held in a 1-stock portfolio.
Business
1 answer:
densk [106]3 years ago
8 0

Answer:

The SML relates a stock's required return to its market risk. The slope and intercept of this line cannot be controlled by the firms' managers, but managers can influence their firms' positions on the line by such actions as changing the firm's capital structure or the type of assets it employs.

Explanation: The SML can help to determine whether an investment product would offer a favorable expected return compared to its level of risk. The formula for plotting the SML is: Required Return = Risk-Free Rate of Return + Beta (Market Return - Risk-Free Rate of Return).

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With respect to the environment in which a business operates, factors such as competition, political and legal forces, and economic climate would all be classified as uncontrollable elements.

What is a controllable element of the marketing environment?

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6 0
2 years ago
Assets that are not expected to provide benefits for a number of accounting periods are called __________.
kiruha [24]
Assets that are not expected to provide benefits for a number of accounting periods are called b. fixed assets
5 0
3 years ago
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The competitive firm's short-run supply curve is its A. marginal cost curve. B. marginal cost curve, but only the portion above
Lilit [14]

Answer:

B. marginal cost curve, but only the portion above the minimum of average total cost.

Explanation:

  • A competitive firms short-run supply curve is a segment of the marginal cost and lies above the average variable costs and if a short run firm decides to shut down its prices of the goods is less than the average variable costs of production.
5 0
3 years ago
Which of the following would make thebest topic sentence
malfutka [58]

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I need a choice...

Explanation:

6 0
3 years ago
Marshmellow Corporation sells a product for $140 per unit. The product's current sales are 12,500 units and its break-even sales
xeze [42]

Answer:

c. 10%

Explanation:

Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.

Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units

Percentage of margin of safety to sales = Margin of safety / Actual sales

Percentage of margin of safety to sales = 1,250 / 12,500

Percentage of margin of safety to sales = 0.10

Percentage of margin of safety to sales = 10%

3 0
3 years ago
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