1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
cestrela7 [59]
3 years ago
8

Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming the

y each add a stock to their portfolio, which of the following is most likely? Relative to Bob’s portfolio, Sharon’s portfolio will experience the _________.a. larger increase in total risk. b. larger increase in return. c. larger decrease in total risk d. larger decrease in market risk.
Business
1 answer:
nikdorinn [45]3 years ago
5 0

Answer:

The correct answer is: C. larger decrease in total risk.

Explanation:

The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.

You might be interested in
According to the U.S. Department of Labor Statistics, _____ is the industry earning the highest average annual wage in 2009.
Alchen [17]

Answer:

B. federal government

4 0
3 years ago
Read 2 more answers
You observe the following term structure: Effective Annual YTM 1-year zero-coupon bond 5.2 % 2-year zero-coupon bond 5.3 3-year
Lisa [10]

Answer:

Explanation:

a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.

b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond

The return on one year bond is = 5.2%

The price of 4 year bond today

=\frac{ 1000}{ (1.055)^4}

Price of 4 year bond today = 807.22

If yield curves is unchanged, the bond will have 3-year maturity and price will be

=\frac{  1000}{(1.054)^3}

If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04

Return

=\frac{ (854.04 - 807.22)}{807.22}

Return = 5.8%

The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)

8 0
3 years ago
has excess cash of​ $15,000 at the end of the harvesting season. will need this cash in four months for normal operations. Requi
kolezko [41]

Answer:

1)

Some of the major reasons why Garden Haven might to choose to either  invest in debt or equity securities are as follows;

  • They want to generate earnings. It is better to earn money from excess cash than keep it idle.
  • They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash .
  • To meet cyclical cash needs.
  • They may have policies as regard to quantum of cash that can be kept .

2)

In terms of classification, Garden Haven's investment falls in short term investments.

Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.

8 0
3 years ago
What are deficient products? products that have neither immediate appeal nor long-run benefits products that give high immediate
Lisa [10]

Answer:

Products that have neither immediate appeal nor long-run benefits

Explanation:

A product represents a bundle of utilities created by a producer to satisfy a want.

A deficient product as the name suggests, would refer to such products which are deficient in attributes that represent a customer want and the ones which fail to satisfy customer wants.

Those products who do not conform to a particular quality standard or whose performance is below par as per customer expectations would be termed as deficient products.

Sometimes, organizations deliberately create deficient products so as to induce repurchase of subsequent products depicted as improvements over the previous ones.

Such products lack current appeal and are neither expected to accrue to long term benefits.

7 0
3 years ago
An auto repair technician who specializes in the installation, troubleshooting, and repair of heating and air conditioning syste
Feliz [49]
<span>This person would be a "passenger comfort specialist.</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Is Federal Income Tax a direct or indirect tax? Explain your response.
    10·1 answer
  • In the T-bill secondary market the ask yield will normally be less than the bid yield. True or False
    12·1 answer
  • Compared to an early president’s cabinet, the size and impact of a modern president’s cabinet has ______________.
    8·1 answer
  • CopperCore Inc., a U.S. business, took a 31 percent equity interest in Javier Holdings, a family business based in Spain. Accord
    5·1 answer
  • During 2020, Kate Holmes Co.'s first year of operations, the company reports pretax financial income at $250,000. Holmes's enact
    5·1 answer
  • Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream
    10·1 answer
  • Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000
    9·1 answer
  • The amount of time it takes Robby to go grocery shopping is continuous and uniformly distributed between 20 minutes and 45 minut
    11·1 answer
  • LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividen
    13·1 answer
  • ANSWER FAST please !!!
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!