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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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Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year t
podryga [215]

Answer:

5.85%

Explanation:

Suppose the real risk-free rate is 3.50%,  the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the years to maturity.  What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is NOT valid?   Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.

a. 5.75%

B. 5.85%

c. 5.95%

d. 6.05%

e. 6.15%

r = r* + IP + DRP + LP + MRP

r = 3.50% + 2.25% + 0 + 0 + .10% = 5.85%

6 0
4 years ago
Every time andres raises his hand, he receives one point. "raising his hand" is considered the:
Vadim26 [7]

In an experiment, raising his hand would be the dependent variable.

5 0
4 years ago
Managers in each of the five areas of management need specific information in order to make decisions. Which manager needs to ha
dalvyx [7]

Answer:

The answer is the Marketing Manager.

Explanation:

To begin with lets see what are the 5 functional areas of management.

  1. Production Management
  2. Human Resource Management
  3. Office Management
  4. Marketing Management
  5. Financial Management

Out of these, the marketing manager must have a clear understanding and an idea about a firm's products and services and those offered by competitors  because in the end, he or she is the one who is going to sell the product and make money to the company.

Understanding competition and their products will aid the marketing manager in developing strategic marketing planning to capture a wider share of the market.

Moreover, this will support to identify what sort of changes are required to made in the product to accelerate its selling and growth potential in the future.

7 0
3 years ago
"A small grocery store has three employees working each shift, but they only" have one checkout register. Depending on which emp
serg [7]

Answer:

establishment of responsibility

Explanation:

One of the principles of control activities is establishment of responsibility. This establishment of responsibilty means that an employee is meant to have a level of responsibilty for his work as well as decisions taken.

From the question, it can be seen that the use of one register by three worker working diffeent shifts ensure a lack of responsibilty on the part of the workers. This is because if each of the workers had seperate registers for entering customer check out, there would be more responsibilty from the workers in discharging their duties as any mistakes will be owned by each worker.

Cheers.

8 0
3 years ago
Two individuals at a retail store work the same cash register. You evaluate this situation as Select one: a. Supporting internal
spin [16.1K]

Answer:

B. A violation of establishment of responsibility

Explanation:

They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility

5 0
4 years ago
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