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murzikaleks [220]
2 years ago
11

Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital alloc

ation line? I) Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors. II) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. III) Investors choose the portfolio that maximizes their expected utility.
Business
1 answer:
Mice21 [21]2 years ago
4 0

Answer:II) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. III) Investors choose the portfolio that maximizes their expected utility.

Explanation:The capital allocation line is a line created in a graph by investors in an economy to display or identify the potential risks involved in taking risky decisions. This line is one the determining factors to ensure that the investor has adequate knowledge about the risky nature of a capital investment.

Investors generally choose portfolios that guarantee maximum profits with reduced chances of loss. More risk averse investor will choose or opt for less risky portfolio.

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AveGali [126]
The first once is c and and is a
3 0
2 years ago
During 20X0, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, 20X0, one-half of these good were inc
wolverine [178]

Answer:

The amount to be repot is $1,450,000

Explanation:

in this question, we are asked to calculate the amount of selling expenses to be recorded in the company’s consolidated income statement for that year.

To answer this question, we employ a mathematical approach;

Mathematically;

Selling expenses = Total expenses - Contra Expenses

from the question, we identify that total expenses is (1,100,000 + 400,000) = $1,500,000

Contra expenses = $50,000

The selling expenses is thus; 1,500,000 - 50,000 = $1,450,000

4 0
3 years ago
At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De
Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0
3 years ago
You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues.
mote1985 [20]

Answer:

Increase price.

Explanation:

Price elasticity is the degree of responsiveness of quantity demanded to changes in price. Ideally as price increases quantity demanded reduces. When prices reduce quantity demanded increases.

As a new manager of Rock Record company, if the economics consultants inform you the price elasticity is less than one it means quantity does not change with increase in price.

So price can be increased without a corresponding decrease in price. The goal of higher revenue can be achieved by increasing the product price.

6 0
3 years ago
Read 2 more answers
What are some of the financial challenges that individuals face when they first live on their own?
Artyom0805 [142]
Paying rent, paying for food, maintaining health care.
3 0
3 years ago
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