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3 years ago

Diversification is important in investing because...

2 answers:

8 0

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

san4es73 [151]3 years ago

6 0

Diversification is important in investing because the risk associated with the investment is lower.

Further Explanation:

Diversification is the strategy of investing in the market at a lower risk. In this strategy, the company, individual and corporation invest their savings in a different industry. So, the risk for the overall investment becomes lower. If the investor puts all of his savings in one industry and if that industry goes into depression, the whole saving of the investor has become futile. But the investor invests some of his money in two different industries and maybe one goes in depression then the loss occurred can be compensated by the profit from the other industry.

Types of diversification:

Industry diversification: In this type of diversification, the investor invests in the different industries of the market.
Assets diversification: In this type of diversification, the investor invests in different instruments and assets of the company. For example, treasury bills, and mutual funds.
Geographic diversification: In this type of diversification, the investor invests in a different location. For example, home country investment and foreign country investment.
Individual company diversification: In this type of diversification, the investor invests in a different company at his particular needs.

Learn more:

1. Learn more about diversification

brainly.com/question/2480636

2. Learn more about investment

brainly.com/question/5959656

3. Learn more about risk-free rate

brainly.com/question/7268541

Answer details:

Grade: Middle School

Subject: International business

Chapter: Diversification

Keywords: diversification, investing, because, the risk associated, lower risk, strategy, individual, compensate by profit, industry, assets, geographic.

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During December, Far West Services makes a $4,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.

Lina20 [59]

Answer

Debit Accounts receivable $4,200

Credit Revenue account $3,870.97

Credit State Sales tax payable $232.26

Credit local Sales tax payable $96.77

Explanation:

When revenue is earned but cash is yet to be received and sales tax are to be accounted for at 8.5%, the entries required are;

Debit Accounts receivable 108.5%

Credit Revenue account 100%

Credit Sales tax payable 8.5%

Given that the sales tax amount is in addition to the credit sale amount, let the sales revenue be R

6% * R + 2.5% * R + R = $4,200

1.085R = $4200

R = $3870.97

States tax = 6% * $3870.97

=$232.26

Local tax = 2.5% * $3870.97

= $96.77

5 0

3 years ago

The current account includes __________. a. the export and import of goods and services. b. all purchases and sales of assets su

umka2103 [35]

Answer:

A. The export and import of goods and services

Explanation:

The current account refers to the trade balance of a country. It is the record of a country's transactions with the rest of the world.

Current account includes imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.

The current account of a country can either be a surplus (positive) or a deficit (negative).

Surplus current account is when a country's export is greater than its import.

Deficit current account is when a country's export is less than its import.

Import refers a situation where a country buys goods from another country.

Export refers to a situation where a country sells to other countries of the world.

The current account is a part of the balance of payments, the other part is the capital or financial account.

Financial/capital account measures cross-border investments in financial instruments and changes in central bank reserves.

6 0

3 years ago

Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor

AleksandrR [38]

Answer:

$13,335

Explanation:

Required production in units for April and May are 6,500 units and 6,200 units respectively.

Direct labor hours needed is 0.15 for both months.

Total direct labor hours needed for each month would be;

April

= 6,500 units × 0.15

= 975

May

=6,200 units × 0.15

= 930

Direct labor rate per hour for each months is $7

Total direct labor cost for April would be;

= $7 × 975

= $6,825

Total direct labor cost for May would be;

= $7 × 930

= $6,510

Therefore, total direct labor cost for both months April and May would be;

= $6,825 + $6,510

= $13,335

4 0

3 years ago

which of the following describes an important difference between general partnership and limited partnerships

dexar [7]

The main difference between a general partnership and a limited partnership is that "A general partnership has unlimited liability for all partners while a limited partnership has limited liability." In addition, the liability of the personal assets in a general partnership is its obligation.

8 0

3 years ago

Read 2 more answers

This member of the construction crew stands above all the crew chiefs and answers only to the director, the designers, and the b

olga55 [171]

Answer:

4. Technical Director

Explanation:

Based on the specifications of the role being mentioned it seems that this is referring to the Technical Director role. Like mentioned in the question this role is the senior technical person in a job site and answers only to the director. Their responsibilities are varied as they organize, coordinate, engineer, and schedule any and all elements regarding technical production.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0

3 years ago