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murzikaleks [220]
3 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]3 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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In multiple regression, the __________ procedure aids researchers in finding violations of the assumptions of regression. Questi
kirza4 [7]

Answer:

The correct answer is letter "C": backward elimination.

Explanation:

Multiple regression is a method used to measure the relationship that some independent variables could have within a statistical study. These studies could be useful at the financial or scientific level to support and report experimental mathematical results in an understandable way.

In multiple regression, backward elimination refers to an approach used to remove features that have irrelevant influence on the dependent variable or that violate the rule of the regression. It is a form of stepwise regression.

5 0
3 years ago
According to Jack Gibb’s work on supportive and defensive communication, a supervisor who ____________ is promoting a disconfirm
notsponge [240]
According to Jack Gibb’s work on supportive and defensive communication, a supervisor who doesn't show any concern for the feelings of others is promoting a disconfirming climate.
6 0
3 years ago
An economic outcome is said to be efficient if the economy is a getting all it can get from the scarce resources it has availabl
Anni [7]

Answer:

The correct answer is option a.

Explanation:

An economic outcome is said to e efficient if the economy can produce the maximum amount of goods and services using all the scarce resources it has. If the production of anyone good cannot be increased without decreasing the production of any other good, the production is said to be efficient.

If the economy can increase production without additional resources then the current level of production is not efficient.

8 0
3 years ago
Suppose the government spends $500 billion during the fiscal year 2014 on goods and services. In addition, the government collec
Delicious77 [7]

Answer:

170 billion ; deficit

Explanation:

Given:

Amount spent by the government = $500 billion

Tax revenue collected = $480 billion

Transfer payments = $150 billion

Now,

The budget balance for government

=  Tax revenue - Amount spent - Transfer payments

= $480 billion - $500 billion - $150 billion

= -170 billion

Here the negative sign depicts the deficit

Hence,

The answer is option 170 billion ; deficit

5 0
4 years ago
Steve and Holly report the following items for 2020: Dividend income $16,000 Interest income 14,000 Itemized deductions (none of
lana [24]

Answer: ($4000)

Explanation:

Based on the information given in the question, the amount that must be added back to taxable income (loss) in calculating their net operating loss, will be:

Dividend income = $16000

Add: Interest income = $14000

Add: Business capital gain = $2000

Less: Business loss = $10000

Less: Itemized deduction = $26000

Taxable loss = ($16000 + $14000 + $2000) - ($10000 + $26000)

= $32000 - $36000

= - $4000

7 0
3 years ago
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