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Mandarinka [93]
3 years ago
12

Which one of the following risks can be progressively eliminated by adding stocks to a portfolio?

Business
1 answer:
Temka [501]3 years ago
6 0

Answer: The answer is "Unique Risk".

Explanation: Market risk can be eliminated in a stock portfolio through diversification. The risk that remains in a stock portfolio after efforts to diversify is known as a unique risk. Average returns on high-risk assets are higher than those on low-risk assets.

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Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. S
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Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

= $42

6 0
3 years ago
You deposit $5000 at end of each year for 10 years. assume you are earning 8.88% per year for the entire problem. after 10 years
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I say around 15-25 yrs but really i am not sure just being honest 

8 0
3 years ago
Sandra williams is single. she itemized deductions in 2014. she plans to itemize for 2015. in order for her plan to itemize dedu
Bess [88]
The answer is $6200.00

Based on https://taxfoundation.org/2014-tax-brackets/

The standard deduction single based on the source is $6200. Tax exemptions for singles are up to $52,800. The threshold on this tax is an annual salary of $254,200. Higher salaries would have higher tax deductions. Once a single tax holder enters $376,700 the person would no longer be included for higher exemption because of the gross compensation increase.
3 0
3 years ago
A market researcher who uses his ability to identify a logical sequence to predict demand for a new line of winter clothing is u
Charra [1.4K]

Answer:

The correct answer is Inductive reasoning.

Explanation:

Inductive reasoning is a form of reasoning in which the truth of the premises supports the conclusion, but does not guarantee it. A classic example of inductive reasoning is:

  1. All the crows observed so far have been black
  2. Therefore, all crows are black

In principle, it could be that the next crow observed is not black. In contrast to deductive reasoning, inductive reasoning has the advantage of being expansive, that is, the conclusion contains more information than is contained in the premises. Given its expansive nature, inductive reasoning is very useful and frequent in science and in everyday life. However, given its fallible nature, its justification is problematic. When are we justified in making an inductive inference, and concluding, for example, that all crows are black from a limited sample of them? What distinguishes a good inductive argument from a bad one? These and other related problems give rise to the problem of induction, whose validity and importance has continued for centuries.

7 0
3 years ago
Discuss the logic underlying the use of three-sigma limits on Shewhart control charts. How will the chart respond if narrower li
AnnZ [28]

Answer:

The Shewhart control charts are charts used to monitor processes and behaviours in businesses statistically to ensure they are under control. They have been known to produce superb results especially with the use of the 3-sigma limits. The use of narrower limits provides practicality in testing more scenarios, the investigation of more causes and detection of more false causes.

Explanation:

The use of the 3 sigma limits in the Shewhart control charts using narrow limits provides for better control of business enterprises by ensuring that more investigations and detection of false causes are conducted. Thes gives a much more specific range of results in practice compared to the wide range approach.

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3 years ago
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