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Goryan [66]
2 years ago
15

The principle of diversification teaches us that using two securities it is always possible to find a portfolio with no short po

sitions with a variance that is:_______
A. Zero
B. Less than the variance of each asset
C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.
D. None of the above.
Business
1 answer:
Oliga [24]2 years ago
6 0

Answer:

C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.

Explanation:

In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets

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2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per s
Naily [24]

Answer: $23.63 million

Explanation:

First and foremost, we can calculate the quarterly common stockholder dividend which will be:

= $0.25 × 1 Million

= $0.25 million

Then, the annual dividend to the common stockholders will be:

= $0.25 million × 4

= $1 million

The quarterly preferred stockholder dividend will be calculated as:

= $0.50 × 0.50 Million

= $0.25 million

We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:

= $0.25 million × 4

= $1 Million

Total Dividend would then be:

= Annual dividend to common stockholders + Annual dividend to preferred stockholder

= $1 Million + $1 Million

= $2 Million

The value of the retained earnings balance at the end of the year will then be:

= Retained Earnings at the beginning of the year + Net Income – Dividend

= $23.45 + $2.18 - $2.00

= $23.63 million

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3 years ago
Prompt What is market information?
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The analysis of past sales and interpretation of cost information are important in evaluating performance and providing useful facts for future planning. All these activities rely on marketing information and a rigorous marketing research process to produce insights managers can trust and act on.
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3 years ago
Which is the best example of the seniority rule?​
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Seniority is being older or more experienced than someone else. An example of the seniority rule would be a 4 year senator being appointed to a committee over a newly elected senator.

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The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as:___
horsena [70]

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.

Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.

The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.

An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.

Learn more about gross spreads here:-brainly.com/question/16259338

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