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Dahasolnce [82]
3 years ago
13

According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual

stocks held in isolation. Thus, the relevant risk of a stock is the stock's contribution to the riskiness of a well-diversified portfolio.A) TrueB) False
Business
1 answer:
Paha777 [63]3 years ago
6 0

Answer:

A) True

Explanation:

The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.

Return earned by a portfolio is the weighted average return of the individual stock returns.

CAPM helps calculate expected return of an investor by the following formula:

Return = R_{f} \ + B(R_{m}\ -\ R_{f}  )

wherein, R_{f} = Risk free rate of return yielded by treasury bonds

              B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.

             R_{m}= Return which can be earned on market portfolio

Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.

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The law recognizes each​ person's right to live his or her life without being subjected to unwarranted and undesired publicity.
Margarita [4]

Answer:

Privacy

Explanation:

The law gives right to every person to their own privacy i.e. for one to live without being subjected to unwarranted and undesired publicity. The right to privacy actively deals with issue surrounding the personal matters of an individual and the right for them to be let alone.

A violation of this right is called the tort of invasion of the right to privacy. The tort of invasion of the right to privacy occurs when an individual sues another person who he/she believes has trespassed on his right to privacy. This trespass might come in form of disclose of their private information, or using the person`s name and associated things for another person`s gain without their consent.

4 0
3 years ago
At a restaurant the cost for a breakfast taco and a small glass of milk is $2.10. The cost for 2 tacos and 3 small glasses of mi
aliya0001 [1]

Answer:

m=$0.95

t=$1.15

Explanation:

Let m=cost of milk

t=cost of taco

t+m=$2.10 (1)

2t+3m=$5.15 (2)

From (1)

t=$2.10-m

Sub into (2)

2($2.10-m)+3m=$5.15

$4.2-2m+3m=$5.15

$4.2+m=5.15

m=$5.15-$4.2

m=$0.95

Sub value of m into (1)

t+m=$2.10

t+$0.95=$2.10

t=$2.10-0.95

t=$1.15

4 0
3 years ago
Liquidity ratios are used to measure a firm's ability to meet its obligations as they come due. Two of the most commonly used li
marshall27 [118]

Answer:

Current Ratio= Current Assets/ Current Liabilities

Explanation:

Current Ratio= Current Assets/ Current Liabilities

The current ratio is an important measure of a company's ability to pay its short term obligations. It is defined as current assets divided by current liabilities.

Current assets are cash and other resources that are expected to be sold or used within one year or the company's operating cycle , whichever is longer. Examples are cash, short term investments , accounts receivable, short term notes receivable, goods for sale ( called merchandise or inventory) and prepaid expenses. Prepaid expenses are usually listed last because they will not be converted to cash ( instead they are used).

Current liabilities are obligations due to be paid or settled within one year of operating cycle, whichever is longer. they are usually settled by paying out current assets such as cash . Current liabilities often include accounts payable , notes payable, wages payable, taxes payable, interest payable and unearned revenues. Also any portion of a long term liability due to be paid within one year or the operating cycle whichever is longer is a current liability.

3 0
3 years ago
Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was $20,000. Reporte
Natali [406]

Answer:

Net income year 2 = $21,300

Explanation:

I looked for the missing information and found this:

Year            Depreciation overstated         Prepaid expense omitted

1                              $2,500                                $2,000

2                             $4,000                                $2,700

If your question doesn't include the same values, just adjust the answer.

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300

5 0
3 years ago
Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?
vitfil [10]

Answer:

Exception reporting

Explanation:

Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds?

Drill down

Key performance indicators

Status access

Trend analysis

Exception reporting

Dashboard reporting is a process used to represent key performance indicators and relevant business data in a visual and interactive way and Exception reporting is a method of data analysis that compares an incoming stream of data to an established base set of data and flags items that don't quite match i.e,those instances in which actual performance deviated significantly from expectations and it enables users to have reports that highlight deviations larger than certain thresholds.

3 0
3 years ago
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