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const2013 [10]
3 years ago
6

As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation? a) It decreas

es at an increasing rate. b)It increases at an increasing rate. c) It first decreases rapidly, then starts to decrease slowly as more securities are added. d) It decreases at a constent rate e) It increases at a decreasing rate.
Business
1 answer:
Assoli18 [71]3 years ago
4 0

Answer:

c) It first decreases rapidly, then starts to decrease slowly as more securities are added.

Explanation:

In the case when the number of securities in a portfolio is rises so the standard deviation of the average portfolio would first reduced instantly and after then it begins reduced in slowly manner according to the number of securities added

Therefore the correct option is c.

Hence, all the other options are wrong

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Conventional wisdom says one should measure a manager's investment performance over an entire market cycle. What arguments suppo
White raven [17]

Answer:

In every form of analysis, it is always safer to take a macro or holistic view of the situation. This is true for the investment performance of a manager. One investment decision that went right does not suffice to classify an investment portfolio manager as proficient, neither is one that went south enough to tag him deficient.

The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.

However, if it was possible to analyse the market for volatility and adjust our forecasts it becomes unnecessary to look at and analyse all the information from a 12-month cycle before coming to terms about the performance of the manager.

Cheers!

4 0
3 years ago
Which of the following is true of liquidity? Select one: a. Liquidity metrics include debt ratio, times interest earned, and rat
kompoz [17]

Answer:

c. Liquidity is the ability to convert assets to cash.

Explanation:

The company's level of liquidity deals with the company's level of cash which is usually held to meet current obligations.

The liquidity ratios are ratios that indicate how well and quickly a company can convert current assets into cash for the settlement of current liabilities.

Examples of liquidity ratios include current ratio, acid test/quick ratio , cash ratio and working capital ratio.

6 0
3 years ago
What is the total account dept as of the statement date called?
madreJ [45]

The total account Dept as of the statement date is known as the balance.

3 0
4 years ago
Inadequate competition can lead to: a. a competitive marketplace. c. mobility of resources. b. market failure. d. lower prices a
diamong [38]
Inadequate competition can lead to market failure. The correct answer is B, market failure. 
5 0
4 years ago
Profit-maximizing firms enter a competitive market when existing firms in that market have.
alexdok [17]

Answer:Profit-maximizing firms enter a competitive market when, for existing firms in that market, total revenue exceeds fixed costs.

Explanation:

that is what i think sorry if im not right

6 0
1 year ago
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