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gayaneshka [121]
3 years ago
6

The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because th

e market portfolio: Multiple Choice has specific risk. offers lower returns. has less systematic risk. diversifies risk.
Business
1 answer:
NISA [10]3 years ago
6 0

Answer:

has specific risk

Explanation:

Standard deviation is a measure of central tendency. It measures the variation of data from a central value. As such variables with high standard deviation have values far from the central value while standard deviation close to the central value is low.

So when individual stocks have higher standard deviation it means prices are less stable than that of market portfolio.

This can be attributed to them having specific risk. The market is not subject to diversification risk so prices tend to fluctuate less

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Swifty Corporation sells its product for $5600 per unit. Variable costs per unit are: manufacturing, $2800, and selling and admi
galben [10]

Answer:

Am nevoie de Puncte

Explanation:

6 0
3 years ago
It is May 18, 2017. You have a $10,000 semi-annual bond with a coupon rate of 10.375% which matures May 5, 2044. The bond is pri
Keith_Richards [23]

Answer:

-3.91%.

Explanation:

The Duration Adjustment (% change in bond price) is given by:

= (Duration) * (Change in yield in %)

= -(7.81) x (0.5%)

= -3.91%

The Convexity Adjustment is given by:

= 0.5 * Convexity *  (Change in yield, as a fraction)^2

= 0.5 * 99.87 * (0.005)^2

= 0.5 * 99.87 * 0.000025

= 0.001248375

= 0.0012%

Thus, the convexity correction is 0.0012%

Thus, the total change in bond price = -3.91% + 0.0012% = -3.91%.

3 0
2 years ago
Frances, an executive with GMO Seed & Feed, Inc., has to decide whether to market a product that could offer substantial ben
Y_Kistochka [10]

Frances must stand by his ethical standards and defer his plans to market the product.

Explanation:

Frances is stranded amidst classic case of an ethical dilemma. The ethical dilemma is an ethical perspective which puts a person in a state of to do or not. This is common and everyone undergoes through this phase for more than once in his/her lifetime.

The dilemma arises due to the substantiative profits that he can earn from marketing the product and his ethical concerns that the product is harmful for a section of the user. He needs to stick to his ethical standards and put the products to more rigorous tests and research. This would enable him to market his products in the future with some twitches and upholding his ethical concerns too.

3 0
3 years ago
Question 5 of 20
umka21 [38]

When you invest your money, it is likely that in future your purchasing power will A. go up and down.

<h3>What will happen to your purchasing power?</h3>

If you invest your money today, there is a chance that you will get back more money than you deposited, or less than you deposited.

This means that you will either have more money or less money to purchase goods and services. In other words, your purchasing power will go up and down.

Find out more on purchasing power at brainly.com/question/2286004.

7 0
2 years ago
Match the financial statement with its description. To match them, click the Description and then click the Financial Report Nam
kherson [118]

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

7 0
3 years ago
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