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Kazeer [188]
3 years ago
11

The risk that cannot be diversified away is Group of answer choices unique risk and non-systematic risk. market and non-systemat

ic risk. unique and idiosyncratic risk. systematic risk. firm-specific risk. g
Business
1 answer:
N76 [4]3 years ago
7 0

Answer:

firm-specific risk.

Explanation:

Firm-specific risk can be regarded as unsystematic risk tht is associated with a specific investment in a particular firm, and as regards to theory of finance this is completely diversifiable.

Under this risk, It is possible for an investor to lower their risk through increament of the number of investments that they are having in their portfolio. As regards investor,

specific risk can be regarded as hazard which applies to a specific company.

It should be noted that The risk that cannot be diversified away is firm-specific risk.

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Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r
ahrayia [7]

Answer:

The most I could pay for the investment is $12,960.09  

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years  Cashflows [email protected] 12% PV

1          5000 0.892857143  4,464.29  

2          5300 0.797193878  4,225.13  

3           6000 0.711780248  4,270.68  

   Total of present values               12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.                                          

8 0
3 years ago
a retailer acquires merchandise for resale. how would this be recorded in a perpetual inventory system?
ella [17]
Debited to the inventory account.


Hope this helps!
5 0
2 years ago
You're trying to choose between two different investment, both of which have up – front costs of $45,000. investment g returns $
DochEvi [55]
Amount invested in both schemes is $45,000
returns in investment g is 75,000 in 6 years. 
yearly return is:
75000/6=12,500

returns in investment h is 105,000 in 9 years
yearly return is:
105,000/9
=11,666.67

from the above results we can conclude that investment g has the higher returns.
4 0
3 years ago
Coursework beyond that of a bachelor's degree is known as interdisciplinary.<br><br> True<br> False
Marysya12 [62]

Answer:

false

Explanation:

6 0
3 years ago
People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equil
Alik [6]

Answer: structurally unemployed

Explanation: The structurally unemployed are people who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium. This translates to a mismatch between the jobs available and the skill levels of unemployed workers i.e., the skills unemployed workers have do not match the skills needed or required by employers which often are higher paying. Structural unemployment is caused by forces such as technological advancements, trade agreements etc. Typically it occurs when an underlying shift in the economy makes it difficult for some group of workers to obtain jobs.

3 0
3 years ago
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