Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
Answer:
c
Explanation:
not sure but I tried may best tho
Answer:
Option B
Explanation:
Option B:
Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.
Answer:
260 million. The answer is not in the available options.
Explanation:
Projected benefit obligation as at January 01, 2018 250
Add: Service cost 30
Add: Interest Cost (250*6%) 15
Less: Retiree benefits paid 35
Projected benefit obligation as at December 31, 2018 260
