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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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8. What includes retail sales, housing starts, and truck and<br><br> auto sales
GREYUIT [131]

Answer:

monthly data series in a GDP

Explanation:

A GDP is defined as the actual domestically manufactured or produced products or the services provided in a financial year which describes or estimates the financial status or economic status of a country. GDP stands for Gross domestic product.

By analyzing the monthly data series of goods or services produced one can predict the real GDP of a country to be. One can use the monthly observations of the employment, unit auto as well as truck sales, sousing starts, retail sales, trade, automobile inventories, manufacturing, shipment of machinery and equipment, index of the industrial production, etc. to predict the GDP growth or get an idea of the GDP figures that are going to show the robust growth of the economy.

7 0
2 years ago
Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid il
Bond [772]

Answer:

A) and goes further than necessary to ensure full coverage

8 0
3 years ago
Which characteristics describe customers who are more likely to have high assets and medium-low debt?
Zielflug [23.3K]

Customers with credit cards with no balance are more likely to have high assets and medium-low debt.

<h3>What do you mean by Credit card?</h3>

A credit card is a small rectangular or metal piece of paper issued by a bank or financial services company, which allows cardholders to borrow money to pay for goods and services from merchants who accept cards to pay.

Customers who are more likely to have medium and low credit often use credit cards, but do not leave a balance. They also have a savings account and a retirement account.

Thus, Customers with have credit cards with no balance are more likely to have high assets and medium-low debt.

To learn more about credit card refer:

brainly.com/question/11199005

#SPJ2

7 0
2 years ago
Assume that we use a perpetual inventory system and that five identical units are purchased at the following dates and costs: Ap
quester [9]

Answer:

Cost of goods sold on April 25 is $13.80 and the inventory balance is $55.20

Explanation:

Data given:total unit

Cost of purchase with  data;

Date                  Amount

April 5                 $10

April 10                $12

April 15                $14

April 20                 $16

April 22                 $17

Total cost             69    

Average cost = total cost /total quantity

                       = 69/5

                       =13.8

The cost of the ending inventory is given on the balance sheet below

Date      Purchases              Cost of            Inventory Bal.   Avg Cost

                                            goods sold

April 5   $10* 1 unit= $10                -                        $10               10/1 = $10

April  10  $12* 1 unit=$12               -               10+ 12 = 22            22/2 = 11

April  15   $14* 1 unit=$14                  -           22+14 =36              36/3 = 12

April 20   $16* 1 unit= $16                  -          36 +16 =52            52/4 = 13

April 22    $17* 1 unit = $17                 -          52+17 =69            69/5 = 13.8

April 25             -           1 unit*13.8 = 13.80      69 - 13.8 = 55.20

5 0
3 years ago
Effective corporate governance is essential in large corporations because corporate ownership (by shareholders) is separated fro
nalin [4]

Answer:

False

Explanation:

Outside directors are members of the board of directors that are not employees of the corporation. While an inside director is a member of the board that is also employed by the corporation, e.g. CEO.

Corporations are separate entities form their stockholders, that is why limited liability applies to them. The board of directors doesn't have to include stockholders or employees, they usually do, but it is not required by law. Outside directors should very experienced and capable individuals that possess certain expertise that can help the corporation. Also, the board should control and supervise upper management, but if only inside directors were admitted into it, then who would control them?

7 0
2 years ago
Read 2 more answers
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