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Dovator [93]
3 years ago
10

One of the easiest methods of diversifying away firm-specific risks is to: Multiple Choice build a portfolio with 40 to 55 indiv

idual stocks. buy only stocks with a beta of 1.0. purchase stocks that plot above the security market line. purchase the shares of an index fund.
Business
1 answer:
Ratling [72]3 years ago
4 0

Answer:

Option D. purchase the shares of a Index fund.

Explanation:

The reason is that the index funds are itself a mutual fund investment and they follow preset rules which helps an ordinary investor to understand those rules easily. Furthermore, they are already a diversified investment, hence investing in the shares of mutual fund makes the investment risk diversified investment.

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How Is productivity determined?
saul85 [17]

Answer:

a. by measuring The relationship to inputs and outputs

Explanation:

Productivity shows the efficiency of generating output using the available inputs. It is measured by dividing the output of a company or a production line by the inputs used. Therefore, productivity shows the relationship between inputs and outputs.

Productivity can also be measured by labor output. In this case, the output is divided by the number of labor hours used.

7 0
3 years ago
If a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at _____ simila
Vinvika [58]

Answer: b. a lower interest rate than

Explanation:

A protective convenant is also referred to as a restrictive covenant and it is referred to as an agreement whereby a particular company is restricted from doing certain things while a contract is still ongoing.

In this case, when a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at lower interest than similar debt with protective covenants. The reason for this is that the lender is protected when there is a convenant which ultimately lower the cost of debt.

8 0
3 years ago
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $800 account of a customer,
Nikolay [14]

Answer:

Explanation:

The journal entry is shown below:

On March 9

Cash A/c Dr $300

         To Account receivable - Green A/c $300

(Being the cash received is recorded)

For recording the cash receipts we debited the cash account and credited the account receivable account so that the correct posting can be done

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
1. General Electric is famous for firing the lowest-performing 10 percent of managers each year. With its strict no-layoffs poli
AleksAgata [21]

Answer:

Firstly i will discuss General electric philosophy. So, what happens is sometimes when you don't put pressure on managers then they become lethargic and slow. For this matter they needs reminder to stay on tip of their game. But at the same time its demotivating too.

Secondly, in Valero energy they believe in psychological safety, to make their employees feel secure and safe. It has great impact on employee performance.

Actually, company's performance is not measured by profit and loss alone. It also measures by other factors like employee safety, employee motivation, impact of policies on employees and bringing positive addition to the life of employee.

General electric is high performing company in terms of profit and revenue. They follow negative reinforcement philosophy.

Both concepts eargs the employees to perform better. But one approach is better i.e to make them feel secure and make them believe that company cares for their career, future and well being. That actually motivates the employee. In return employees works wonders for that company.

In latest HR practices, many professionals are shifting from General electric philosophy to Valero energy philosophy. Because it increases productivity of employee by positive reinforcement. Which actually is better.

3 0
3 years ago
The remaining balance on an amortized loan is paid down evenly over the life of the loan. For example, if you borrow $20,000 tod
dolphi86 [110]

Answer:

O True

Explanation:

Amortization is the gradual reduction in a value or balance of anything over a specified period. Evenly over life amortization of loan is the distribution of outstanding amount over remaining life / period. in this example $20,000 is amortized over 60 months which is 20,000 / 60 = $333.33 per month. So the statement is True.

6 0
4 years ago
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