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
taurus [48]
3 years ago
8

Which of the following statements about portfolio diversifications are correct? Check all that apply. The risk of a portfolio de

clines as the number of stocks in the portfolio increases. By adding enough partially correlated stocks, risk can be completely eliminated. The higher the stocks’ correlation coefficients, the lower the portfolio’s risk. Stocks with perfectly negatively correlated returns do not exist.
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer:

The risk of a portfolio declines as the number of stocks in the portfolio increases.

Explanation:

In simple words, diversification refers to the benefit of lesser risk that a manager gets by adding negatively or less correlates securities in the portfolio.

However, it is a fact that risk can only be minimized and cannot be eliminated completely. The risk that is specific to the business is called systematic risk and due to its unpredictability it cannot be diversified away.

      Thus, from the above we can conclude that the correct option is A.

You might be interested in
Why is a business plan considered a living document?
steposvetlana [31]

Answer:

Explanation:

A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.

3 0
3 years ago
Why does monetary policy usually involve a streamlined inside lag?
elena55 [62]
The Federal Open Market Committee can act almost immediately.
8 0
3 years ago
What is comparing the cost of a business plan to the monetary value of the benefit derived from the same plan known as?
anzhelika [568]

C. net present value analysis i think

5 0
3 years ago
Time Remaining 28 minutes 51 seconds00:28:51 Item 6 Time Remaining 28 minutes 51 seconds00:28:51 A high-level manager gathers hi
weeeeeb [17]

Answer: How will it make me feel about myself?

Explanation:

The options to the question include:

A. Is it legal?

B. Is it balanced?

C. How will it make me feel about myself?

D. Is it a lose-lose situation?

If I were a part of this work team, the question that I would ask myself before initialing the approval of this policy is that "how will this make me feel about myself?"

In this case, I'll need to know the impact of the policy and his I could be affected by it if I initial it and how I'll eventually feel about it.

5 0
3 years ago
Cereal type 1 sells for $1.50/kg. it should contain at least 22% protein, 2% of minerals and vitamins, and at most 30% of starch
Brilliant_brown [7]

This is not enough information to answer this question.

7 0
3 years ago
Other questions:
  • The _____ training outcome is collected to determine whether trainees are using training content back on the job.
    14·1 answer
  • When a u.s. airplane manufacturer sells its airplanes to business executives in germany without using intermediaries, it is refe
    11·1 answer
  • The salesperson for the Big Apple Sign Corporation was trying to get a hardware storeowner to buy a new kind of advertising tool
    9·2 answers
  • stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The requ
    9·1 answer
  • During the year, Bears Inc. recorded credit sales of $620,000. Before adjustments at year-end, Bears has accounts receivable of
    15·1 answer
  • Upon review of the effectiveness of a strategic business decision using evidence-based analytics, business leaders may reverse c
    12·1 answer
  • The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity
    12·1 answer
  • Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted t
    5·1 answer
  • Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate
    15·1 answer
  • Accenture is helping a retail company increase efficiency in the management of customer transactions, payment processing, and an
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!