Answer: Option B
Explanation: In simple words, diversification refers to the process of allocating capital in different investments to reduce the overall risk of the investment portfolio.
Therefore, analyst tries to make portfolio in such a way that securities will be negatively correlated. If two securities are negatively correlated then the decrease of one will lead to proportionate increase of others.
This ensures that the investors money will not be depreciated but at the same time the potential for abnormal returns also decreases.
Answer:
c. TIPS
Explanation:
TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.
Hence, in this situation, the correct answer is option C. TIPS
Answer: A concept known as Present Value of Growth Opportunities (PVGO) offers analysts a distinct method of appraisal. Given current stock values...
Explanation: Where is PVGO located?
PVGO is the value of a stock minus the earnings-to-cost ratio.
This strategy is predicated on the idea that businesses need to distribute profits to shareholders in the absence of a better use for them, such as investing in projects with a positive Net Present Value (NPV).
What is a stock's PVGO?
The portion of a company's share price that reflects forecasts for future profits growth is known as PVGO. The abbreviation "PVGO" stands for "present value of growth opportunities."
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Answer:
price floor , binding
price ceiling binding
price floor , non binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price
Because firms are unable to hire workers due to the minimum wage laws., it means it is binding price floor
Equilibrium price is $3 and the maximum price is $2.70 . Thus, it is a binding price ceiling
Equilibrium price is $3 and the minimum price is $2.70 . Thus, it is a binding floor
Answer:
What is the net realizable value of Accounts Receivable after a $ 140$140 account receivable is written off? is $3550
Explanation:
Account receivable 4000
Allowance bad debts 450
Net realizable =(400-140)-(450-140)
=3860-310
=3550
