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steposvetlana [31]
3 years ago
10

Why is diversification of investments important?

Business
1 answer:
faltersainse [42]3 years ago
3 0

Answer:

O It spreads the investor's risk over several types of investments

Explanation:

Diversification is the practice of spreading investments in different asset classes. It involves purchasing a variety of investment assets rather than a single asset.  Diversification spreads the risk associated with investments to the different categories of assets.

The main objective of diversifying is to minimize the risk.  Should a particular investment to move against expectations, the other assets help reduce the losses. The assets in a diversified investment are referred to as a portfolio.

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My answer b am I right
pychu [463]
Yes, you are correct :)
5 0
2 years ago
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced
konstantin123 [22]

Answer:

A) according to put call parity:

price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]

put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23

B)

you have to purchase both a put and call option ⇒ straddle

the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77

4 0
3 years ago
Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.
Dmitry_Shevchenko [17]

Answer:

The answers are in the attachment below.

6 0
2 years ago
_____ involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and servic
masha68 [24]
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Therefore I think the answer is Sustainability
Hope it helps
8 0
2 years ago
Many people have argued that an income tax should be​ "marriage neutral," that​ is, two people should pay the same total tax whe
worty [1.4K]

Answer:

Ben would pay more in taxes.

Explanation:

A progressive income tax increases the tax rate as the taxpayer earns more money.

In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.

7 0
3 years ago
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