The following statement about diversification is TRUE
A.Diversification is an investment strategy where you invest all your money in one industry.
Explanation:
- A diversified investment is a portfolio of various assets that earns the highest return for the least risk.
- A typical diversified portfolio has a mixture of stocks, fixed income, and commodities.
- It lowers overall risk because, no matter what the economy does, some asset classes will benefit
- Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories.
- It aims to maximize returns by investing in different areas that would each react differently to the same event
- The three types of diversification strategies include the concentric, horizontal and conglomerate.
- Diversification is a method of risk management that involves the change and implementation of different investments stated in a specific portfolio.
Answer:
George buys 5 bags of cookies each month
Explanation:
Given
(per gallon)
(per bag)
Required
Determine the number of bags of cookies he buys
First, we need to determine the marginal utility of cookies
To solve this, we make use of the following formula:
Substitute values for
<em>MU of Milk = 4</em>
<em>Cost of Milk = 2</em>
<em>Cost of Cookies = 4</em>
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This gives:
From the given table:
The corresponding bags of cookies for marginal utility of 4 is 5
Hence:
George buys 5 bags
Answer: The answer is A. Reflects product differentiation.
Explanation:
In a monopolistic competition, companies offer products that are not equal. This product differentiation gives companies power in the market and causes each company to face a demand curve with a downward slope (if it raises the price of its product it will sell less and if it lowers it will sell more). Unlike a perfect competition market where companies face a horizontal demand curve.
Answer: Is an example of money functioning as a UNIT OF ACCOUNT.
Explanation: Money is defined as an item of value between two or more parties used for the exchange of goods or services. It's various functions are; store of value, a unit of account, a medium of exchange.
Money as a unit of account is a measurement of value/cost of goods, services, or assets.
Answer:
Credit union.
Explanation:
A credit union can be defined as a non-profit making financial cooperative that is typically controlled by its members (employees, church groups, labour unions etc) and it is saddled with the responsibility of providing financial services like the traditional banks to employees such as teachers, educators, nurses, etc.
Generally, the profit made from the amount of money that is being deposited by the members of a credit union are usually returned to the members as a form of better interest rates. Some examples of credit unions are SchoolsFirst Credit Union, New York University Federal Credit Union, Consumers Credit Union, etc.
In this scenario, a financial institution advertises itself as especially oriented towards educators and teachers. Thus, the category this institution would most likely fall under is a credit union because it's not run like businesses that is after making profit i.e it's a non-profit business established to assist employees with their finances.
