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
N76 [4]
3 years ago
10

A portfolio manager is considering adding another security to his portfolio. The correlations of the 5 alternatives available ar

e listed below. Which security would enable the highest level of risk diversification
Business
1 answer:
miv72 [106K]3 years ago
8 0

Options

alternatives available are listed below. Which security would enable the highest level of risk diversification? a. 0.0

b. 0.25

c. -0.25

d. -0.75

e. 1.0

Answer:

d. -0.75

Explanation:

In management of risk, diversification is a tool that combines a wide variety of investments within a portfolio.

The least negative security provides the highest level of risk diversification.

In this case, it's -0.75

Diversification spreads risks across various investments, the goal being to increase your odds of investment success and thereby, reducing the risk of loss, i.e. when the ROI on one investment is poor over a certain period, the ROI on others may perform better over that same period.

You might be interested in
The three broad categories of message strategies include​ ______________.
sashaice [31]
The three broad categories of message strategies include cognitive, affective and conative. Within these message strategies they are broken down into subcategories with their advertising strategies. Cognitive strategies are number based and solid informative advertisements to consumers. Affective strategies focused on developing brand name. Conative strategies are looking for consumer behavior/reactions such as giveaways, promotions and the like. 
4 0
4 years ago
Find the cost of equity for Consolidated Wheels and Axles Inc. using the information below: The firm's beta estimate is 0.9 The
SpyIntel [72]

Answer:

r or expected rate of return = 0.1077 or 10.77%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market risk premium

r = 0.051 + 0.9 * 0.063

r or expected rate of return = 0.1077 or 10.77%

8 0
3 years ago
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costi
zavuch27 [327]

Answer:

Explanation:

Process costing can be regarded as a methodology in accounting that involves attributing cost to unit of production in different firms especially firm that are producing product that are homogeneous.

Job order costing can be regarded as

a system that occur when an order of purchase is made by consumer, it helps in way that the price of individual product is affordable by consumer.

a.Companies that produce small quantities of many different products.

(Job order costing)

b.A company that pulverizes wood into pulp to manufacture carboard.

(Process costing)

c.A company that manufactures thousands of identical files.

(Process costing)

d.Companies that produce large numbers of identical products.

(Process costing)

e.A computer repair service that makes service calls to homes.

(Job order costing)

f.A company that assembles electronic parts and software to manufacture

(Process costing)

millions of portable media players.

g.A textbook publisher that produces copies of a particular book in batches.

(Job order costing)

h.A company that bottles milk into one-gallon containers.

(Process costing)

i.A company that makes large quantities of one type of tankless hot water heaters.

(Process costing)

j.A governmental agency that takes bids for specific items it utilizes where each

(Job order costing)

.

7 0
3 years ago
"Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?"
likoan [24]

minimum wage......................

4 0
3 years ago
Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This
Grace [21]

Answer:

Enercio would be taxed on $32,000 even though he withdrew $10,000.

Explanation:

Enercio would be taxed on his share of 40% of $80,000 of ordinary taxable income of ABC LLC irrespective of the fact how much has Enercio has withdrawn from the partnership firm. So, here Enercio would be taxed on $32,000 even though he withdrew $10,000.

3 0
4 years ago
Other questions:
  • Sam is a responsible citizen and files his annual tax returns judiciously. What should he do with tax return documents that are
    15·2 answers
  • An agreement to settle a debt for less than the sum claimed is referred to as?
    9·1 answer
  • Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell
    9·1 answer
  • Projects are identified and selected in the
    8·1 answer
  • Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not f
    14·2 answers
  • Ricardo pays the following taxes during the year: Ricardo's Taxes Taxes Amounts Real estate taxes on his personal residence $2,5
    10·1 answer
  • Ptarmigan Company produces two products. Product A has a contribution margin of $289.20 and requires 12 machine hours. Product B
    14·1 answer
  • An enterprising student has set up an internship clearinghouse for business students. Each student who uses the service fills ou
    6·1 answer
  • Suppose a company is financed with $20 million of equity and $60 million of debt. That is, the company obtained $20 million from
    9·1 answer
  • In order to implement contractionary policy, the government and central bank must _____ goverment spending _______ taxes, and __
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!