1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
denpristay [2]
3 years ago
8

Which of the following statements is FALSE? The risk premium of a security is determined by its systematic risk and does not dep

end on its diversifiable risk. The volatility in a large portfolio will decline until only the systematic risk remains. When we combine many stocks in a large portfolio, the firm-specific risks for each stock will average out and be diversified. Fluctuations of a stock's returns that are due to firm-specific news are common risks.
Business
2 answers:
Delicious77 [7]3 years ago
7 0

Answer:

Fluctuations of stocks's returns that are due to firm-specific news are NOT common risks is the correct answer.

Explanation:

trasher [3.6K]3 years ago
3 0

Answer: Under the given option; the statement (d) is false. i.e. <u><em>Fluctuations of a stock's returns that are due to firm-specific news are common risks.</em></u>

<em>Fluctuations of a stock's return that are due to </em><u><em>market wide news</em></u><em> are common risk. These tend to fluctuate with fluctuation in market wide news and several other variables. </em>

<em>Therefore, the statement </em> <em>Fluctuations of a stock's returns that are due to firm-specific news are common risks, is </em><u><em>false.</em></u>

<u><em>The correct option to this question is (d)</em></u>

You might be interested in
Insurance can help you: evefi
leva [86]

Insurance can definitely help you in case of an emergency.

Hope this helps!

8 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 15 ​billion, respectively.
Stolb23 [73]

Answer:

Ford's weighted average cost of capital is 8.22 %

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.

Calculation of WACC

WACC = Cost of equity + Cost of preferred​ stock + Cost of debt

Capital Source       Market Values     Weight      Cost      Total Cost

equity                         $ 7 ​billion          29.17%      13.6%       3.97 %

preferred​ stock         $ 2 ​billion            8.33%      12%          1.00 %

debt                           $ 15 ​billion         62.50%     5.2 %       3.25%

Total                          $ 24 billion                                          8.22 %

Cost of equity = Risk free rate + Beta × Risk Premium

                       =  4% + 1.2 × 8%

                       =  13.6%

Cost of preferred​ stock = Dividend/Market Price

                                       = $ 3/ $ 25 × 100

                                       = 12%

Cost of debt = interest × (1- tax rate)

                    = 8% × (1-0.35)

                    = 5.2 %

7 0
3 years ago
Thomas has routinely declined invitations to go bar-hopping from kathy, his boss. during his performance review, kathy mentions
andreev551 [17]
This scenario would best be viewed as a QUID PRO QUO SEXUAL HARASSMENT. 
Quid pro quo sexual harassment is the type of sexual harassment that occurs in the workplace,  in which an higher authority figure offers or drop a hint that he  or she will give rewards to an employee under him [or her] in exchange for sexual gratification.
8 0
3 years ago
This information relates to Monty Real Estate Agency for the month of October, 2022.
Darina [25.2K]

Answer:

Oct 1   Cash                            $37000 Dr

                 Common Stock          $37000 Cr

Oct 3  Equipment Account    $4400 Dr

                 Accounts Payable      $4400 Cr

Oct 6  Accounts Receivable       $10500 Dr

                 Commission Revenue    $10500 Cr

Oct 10  Cash                                $190 Dr

                Commission Revenue    $190 Cr

Oct 27  Accounts Payable          $880 Dr

                   Cash                                $880 Cr

Oct 30  Salary Expense              $3000 Dr

                     Cash                              $3000 Cr

Explanation:

The event on October 2 of hiring an administravtive assistant is not a financial event so it will not be recoreded and journalized. All the other transactions are recorded and journalized.

7 0
3 years ago
In one of the case studies in the textbook, Cy Chesterly was the vice president in charge of sales for one of the largest machin
Damm [24]

Answer:

A new president was hired and he found Chesterly out while reviewing the accounting records.

8 0
3 years ago
Other questions:
  • Why might you complete a 1040 form instead of a 1040 EZ tax<br> form?
    15·2 answers
  • Carbohydrates, fats, and proteins, which provide energy
    9·2 answers
  • James, a casino manager, defines and uses signals and symbols to influence corporate culture by communicating central values to
    7·1 answer
  • David Company has plans to produce 100,000 units of Product A and 200,000 units of Product B. The planned results of a month's o
    11·1 answer
  • In order to save time, money, and effort a group of criminologists, sociologists, psychologists, and political scientists combin
    5·1 answer
  • In the following information, what is the times interest earned ratio?
    6·1 answer
  • Which is the correct order of the following steps in the accounting cycle? Prepare financial statements, journalize and post adj
    7·1 answer
  • Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $57000. If the b
    8·1 answer
  • The salvage value on a piece of equipment for Excavators, Inc. is expected to be $10,000 in 12 years. If the discount rate is 8%
    7·1 answer
  • Why do you think<br> Relationship skills are<br> important when you own a<br> business?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!