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larisa [96]
3 years ago
15

Someone who is risk averse has a general dislike for risk and a preference for certainty. If risk aversion eists in the market,

then investors in general are willing to accept somewhat lower returns on less risky securities. Different investors have different degrees of risk aversion, and the end result is that investors with greater risk aversion tend to hold securities with lower risk (and therefore a lower expected return) than investors who have more tolerance for risk. True or false?
Business
1 answer:
jasenka [17]3 years ago
6 0

Answer:

False

Explanation:

A low risk investment slightly increase over time whereas high risk investment  may loose or win a lot of money.

So, a person who is risk averse is likely to attract towards capital than preference over higher return.

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A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on the S&P index is 900. Futures
Blizzard [7]

Answer:

Explanation:

A:

Number of contracts required:

= (0-1.2)×36,000,000÷(900×$250)

= -192

Since negative value, short 192 contracts.

B:

= (0.9 - 1.2)×36,000,000÷(900×$250)

= -48

Since negative value, short 48 contracts.

C:

= (1.8 - 1.2)×36,000,000÷(900×$250)

= 96

Since positive value, long 48 contracts.

7 0
3 years ago
Ruth has a home office that she shares with her husband, Barret. She keeps track of her business profits and expenses in several
myrzilka [38]

Answer:

unlock the user cells and then protect the worksheet

Explanation:

In order for Ruth's husband, Barret not to alter other cells of the worksheet files, she has to unlock the user cells and then protect the worksheet.

By unlocking the user cells and protecting the work sheet, she has prevented her husband, Barret from making a change to other cells of the worksheet.

A worksheet refers to a sheet of paper on which one performs work. The worksheet Ruth used in he home office is the computer based work sheet (software) where she keeps records of her business transactions.

4 0
3 years ago
Joyce works hard and puts in many extra hours. For this, she can anticipate a pay raise, a promotion, or an expanded sales terri
Alex17521 [72]

Answer:

Expectancy theory

Explanation:

Expectancy theory states that when an individual is faced with different choices they will be motivated in a certain way in choosing a particular option based on what they expect to be the result of the choice.

So behaviour is affected by perceived result or consequence of a particular choice.

In the given scenario Joyce works hard and puts in many extra hours, and getting a promotion is most important to Joyce.

So because of her expectations that manager must recognise that:

(1) she is putting in hard work and long hours to obtain a promotion,

(2) what motivates Joyce will change over time (if she does not get the promotion), and

(3) he must clearly show Joyce how to attain the desirable reward.

7 0
3 years ago
Long Text (essay)
skad [1K]

Answer:

Flooding and wet weather are so costly to agricultural land because they cause delays in and reduction of crop harvest.

Explanation:

5 0
3 years ago
M1 and M2 are two definitions of the money supply.
Alex787 [66]

Answer: Please refer to Explanation

Explanation:

M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.

M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.

Now,

Classifying the above will go as,

Gold - Neither M1 or M2

Traveler's check - M1 and M2

Balance in savings accounts - M2 only

Money market account balance - M2 only

Credit cards - Neither M1 or M2

Common stock - Neither M1 or M2

Certificates of deposit - M2 only

Currency - M1 and M2

Balance in Checking accounts - M1 and M2

It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.

5 0
3 years ago
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