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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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natima [27]

Answer:

A. In government expenditures and imports.

Explanation:

We are informed about how The city of Ann Arbor Michigan buys a police car manufactured in Germany.

In the case of this transaction, it is included in GDP accounts in government expenditures and imports.

GDP which is known as Gross Domestic Product can be explained as the total market value of domestic finished goods/service that are been produced in a particular period in a country. The net export, as well as consumption and government expenditures and investment are taking into consideration in GDP. It should be noted that social security payment is not accounted with GDP

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You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
jeyben [28]

The rate of return I would earn if you bought the asset is 16.91.

<h3>What is the internal rate of return?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.

IRR can be calculated with a financial calculator

  • Cash flow in year 0 = $-5250
  • Cash flow in year 1 = $750
  • Cash flow in year 2 = $1000
  • Cash flow in year 3 = $850
  • Cash flow in year 4 = $6250

IRR = 16.91%

To learn more about the internal rate of return, please check: brainly.com/question/24172627

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Which of the following statements are true about this natural monopoly? Check all that apply. The cable company is experiencing
solong [7]

Answer:

The answers are It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. And It is true that without government regulation, natural monopolies can earn positive profit in the short run.

Explanation:

It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

Without government regulation, natural monopolies can earn positive profit in the short run.  It is a true statement.

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