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dem82 [27]
3 years ago
7

Which of the following is TRUE about RISK​ & RETURN​? A. The terms​ "systematic" and​ "diversifiable" risk mean the same thi

ng. B. Ceteris paribus​, higher standard deviations represent lower risk. C. In the CAPM​ model, if the MRP is​ 8% and the​ risk-free rate is​ 2%, then the expected return on the market would be​ 6%. D. For a holding period of 7​ months, the annualized HPR would be greater than the​ 7-month HPR.
Business
1 answer:
marshall27 [118]3 years ago
8 0

Answer:

D. For a holding period of 7​ months, the annualized HPR would be greater than the​ 7-month HPR.

Explanation:

The terms​ systematic risk means the risk associated with the whole market. It is not a diversifiable risk. This risk will be faced in every industry. On the other hand diversifiable risk is associated with a specific industry or security  and it can be mitigate by changing the industry or having presence in presence in multiple industries.

Higher standard deviations represent variation which leads to higher risk and lower standard deviation represents the lower risk due to lower variation.

Expected market return is the sum of risk frre rate and market premium. Expected market rate will be 10%(8%+2%) in the given scanerio rather 6%.

Yes it is True that for a holding period of 7​ months, the annualized HPR would be greater than the​ 7-month HPR.

Suppose HPR of 7 months is 6.3%, The the annualized HPR will be 10.8%(6.3% x 12/7 ) .

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One of the disadvantages of investing in real estate is A) investors need expert help. B) pyramiding. C) equity buildup. D) leve
mixer [17]

There are many disadvantages of investing in real estate and one of it is A) Investors need expert help.

<h3>What is Real estate?</h3>

The investment in property is known as real estate investment. There are many investors who invests in such assets, and earn rentals and capital gains.

The investment in real estate needs expert advice as the person who is the advisor should have the market information so that the perfect price can be quoted in order to purchase or sell an asset.

Learn more about Real Estate at brainly.com/question/27237569

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8 0
2 years ago
George Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory. 2. Sale of d
timurjin [86]

Answer: Three items will appear being;

2. Sale of delivery truck at book value

5. Sale of a debt security held as an available-for-sale investment

6. Collection of loan receivable.

Explanation:

The Investment Section of the Cash Flow Statement contains activities related to investment such as the buying or selling of fixed assets and the buying or selling of other company stocks or bonds.

Out of the above therefore, there are 3 activities that would fall under this section of the Cash Flow Statement.

They are;

2. Sale of delivery truck at book value.

- This refers to the sale of a Fixed asset and as such it goes to the investment section.

5. Sale of a debt security held as an available-for-sale investment.

- As a debt security of another firm that was considered available for sale, this goes to the Investment Section as well.

6. Collection of loan receivable.

- Finally, collection of loan receivable means that the company loaned money to another company making it an investment related cash inflow as it is a long term Investment income source.

7 0
3 years ago
During its first year of operations, mack's plumbing supply co. had sales of $630,000, wrote off $10,100 of accounts as uncollec
Reil [10]
<span>The answer is 516,250 by first calculating expenses (6,500,000-40,000-expenses=590,000), net income = revenue-expenses.</span>
3 0
4 years ago
When supply increases, the supply curve
MariettaO [177]

When supply increases, the supply curve  shifts to the right.

<h3>What is the supply curve?</h3>

This is the curve that is used to show the amount of goods that the producers would be able to make available for the market at a particular price. The supply curve shifts to the right when there is an increase in supply in the economy.

Hence this answers our question by saying that When supply increases, the supply curve  shifts to the right.

Read more on supply curve here: brainly.com/question/11717727

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5 0
1 year ago
The staff educator from the hospital’s respiratory unit is providing a public educational event. The educator is talking about h
Citrus2011 [14]

Answer:

Teaching strategies to reduce complications of existing diagnoses

Explanation:

Teaching strategies to reduce complications of existing diagnoses.

Health Promotion activities focus on preventing disease from developing that is primary prevention. And then screening to identify at early curable stage and this known as secondary prevention and reducing complications of existing or established medical diagnosis, which is the tertiary prevention.

8 0
3 years ago
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