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4vir4ik [10]
3 years ago
9

True or False: Increasing the number of stocks in a portfolio reduces market risk.Consider two stock portfolios. Portfolio B con

sists of 20 different stocks from firms in different industries. Portfolio A consists of 10 different stocks, also from firms in different industries. The return on Portfolio B is likely to be volatile than that of Portfolio A.
Business
1 answer:
nikitadnepr [17]3 years ago
7 0

Answer:

The correct answer is False.

Explanation:

A basic principle of investments is the creation of portfolios (or portfolios) for diversification purposes. At any given time, investors simultaneously hold a set of assets that make up their investment portfolio. A basic principle in finance is that an investor should not place all of his resources in a single asset or in a relatively small number of assets, but in a large number of investment instruments. In this way, the possible bad results in certain assets would be offset by the good results of others. Diversification allows the investor to lower the risk of his portfolio without sacrificing returns or, alternatively, increase the return on his portfolio without increasing his risk. Of course, diversification does not guarantee profits under any circumstances, but it does help to dampen the variability of returns on individual assets.

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Molly was a successful real estate salesperson. She took some time off to stay at home with her first child. Days turned into we
Karolina [17]

Answer: Molly <u><em>cannot </em></u>simply pick up where she left off because <em><u>two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.</u></em>

The mandatory CE Requirements for all Board of Behavioral Science -licensees state that a individual must receive 36 continuing education i.e. (CE) after every two (2)- year license renewal period.

Here,  Molly hadn't kept up with any CE requirements, nor had she renewed her license after it expired almost three years earlier. Therefore she <em><u>cannot </u></em>simply pick up where she left off.

8 0
2 years ago
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
Vladimir79 [104]
You’re answer is 91928393819
6 0
3 years ago
Evertz Metals buys and stockpiles dolomite to use in its smelting processes. Before all this dolomite is​ used, however, they al
insens350 [35]

Answer:

a carrying cost

Explanation:

A carrying cost -

It is the amount which is paid for holding the inventory in the stock , is referred to as a carry cost.

It is also called inventory costs , holding costs.

Carrying cost includes the insurance , the amount spend on the stage of the products , employees cost and includes costs .

Hence, from the given scenario of the question, the correct term for the given options of the question is a carrying cost.

3 0
3 years ago
Why is it important to start investing for retirement at an early age?
Maurinko [17]

So you are more experienced when making future investments, you have more positive spending habits and can afford things other may not be able to at that age.

5 0
3 years ago
Which of the following statements about the price elasticity of demand is correct The absolute value of the elasticity of demand
notsponge [240]

Answer:

Demand is more elastic in the long run than it is in the short run

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is more elastic in the long run than it is in the short run because in the long run consumers have more time to search for suitable substitutes.

When the absolute value of elasticity of demand is less than one, demand is inelastic.

When the absolute value of elasticity of demand is equal to one, demand is unitary.

When the absolute value of elasticity of demand is greater than one, demand is elastic.

Demand is less elastic the smaller the percentage of the consumer's budget the item takes up. 

The elasticity of demand for a specific brand of good doesn't translate into the elasticity of demand for the good.

I hope my answer helps you

4 0
3 years ago
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