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NARA [144]
3 years ago
13

Diversification is an important part of investing because

Business
1 answer:
xeze [42]3 years ago
7 0
Diversification in investments will reduce long-term risk. 
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What is sampling frame?
alex41 [277]

Answer:

"The list of items from which a sample is obtained is known as the sampling frame." -Website of some kind

Explanation:

Brainliest pls?

8 0
3 years ago
Read 2 more answers
Miami Mutual Bank purchases a two-year interest rate cap for a fee of 3 percent of notional principal valued at $20 million, wit
vagabundo [1.1K]

Answer:

Interest Rate Collar

Explanation:

This strategy called the Interest Rate Collar.

The Interest rate collar is an option that is used to hedge the interest rate exposure. It protects the borrower from the risk of increasing the interest rate and also decided a floor declining rate by purchasing an interest rate cap.

In the given scenario the Miami Bank will receive when the interest rate crosses the cap of 11% and pay when there is a decrease below the floor rate of 8% on the principal value.

3 0
4 years ago
The price of a video is ​$4 and the price of a dinner is ​$16. from this we know that a consumer who is maximizing utility will
kenny6666 [7]

b. buy enough of the two goods such that the marginal utility from the last dinner consumed is four times greater than the marginal utility from the last video.

This is because they are paying 4 times as much for the dinner so should get 4 times the utility from it.

3 0
3 years ago
Barette Consulting currently has no debt in its capital structure, has $500 million of total assets, and its basic earning power
QveST [7]

Answer:

d) The ROE would increase

Explanation:

Since the company's operating income will remain unchanged, net income will decrease due to interest expense, but the total number of shares outstanding will decrease. This will result in a higher EPS (earnings per share), and a higher ROE (return on equity), but it would also make the company's risk increase and Re (cost of equity) increase.

6 0
3 years ago
A four-year bond has an 8 percent coupon rate and a face value of $1,000. If the current price of the bond is $878.31, calculate
Vikentia [17]

Answer:

Bond yield to maturity = 12%

Explanation:

Given the face value = $1000

Interest or coupon rate = 8%

Interet per period = 1000 x 8%  =$80

Presnet value, bond price = 878.31

Maturity years = 4

Use below formula in excel to find the maturity yield.

Bond yield to maturity = RATE(NPER,PMT,PV,FV)

Thus, Bond yield to maturity = 12%

6 0
3 years ago
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