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notka56 [123]
2 years ago
11

The principle of diversification tells us that: Select one: a. concentrating an investment in two or three large stocks will eli

minate all of your risk. b. spreading an investment across many diverse assets will eliminate some of the risk. c. spreading an investment across many diverse assets will eliminate all of the risk. d. concentrating an investment in three companies all within the same industry will greatly reduce your overall risk. e. spreading an investment across five diverse companies will not lower your overall risk at all.
Business
1 answer:
jonny [76]2 years ago
7 0

Answer:

The answer is "Option E".

Explanation:

Please find the complete question in the attached file.

Varied portfolios and mixes of diversified assets get a different relationship, eliminating uncontrolled danger and only risk premium. Its total risk is a combination of non - systematic and systematic risks. Therefore, the diversification principle reduces some portion of the risk profile, and that is why distributing an investment across a range of varied assets reduces some of the risk profile.

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Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,8
sveticcg [70]

Answer:

Payback period=2 years 5  months

Payback period=3 years  8 months

Explanation:

<em>The payback period is the estimated length of time in years it takes  .</em>

<em>It is the number of years it takes the cash project to break-even</em>

a) Payback period

Total cash flow for two years = 750×  2 = 1500.000

Balance of cash flow required to make up= 1800000- 1500,000  300,000

Payback period = 2 years + 300,000/750,000× 12 months=  2 years 5  months

Payback period=2 years 5  months

b) Payback period

Total cash flow for 3 years = 450,000 + $225,000 +600,000=1,275 ,000

Balance o cash required to make up 1800,000 = 1,800,000 -1275,000= 525,000

Pay back period = 3 years + 525,000/750,000×  12 months

                            = 3 years  8 months

Payback period=3 years  8 months

5 0
3 years ago
Larry's Lawn Care incurs significant gasoline costs. This cost would be classified as a variable cost if the total gasoline cost
mafiozo [28]

Answer:

Increases in direct proportion to the number of hours the lawn equipment is operated.

Explanation:

Variable costs refer to those costs which vary or change with the level of production output. Such costs rise as production level increases and fall with decrease in the production level.

Examples of variable costs would include direct labor cost which varies with the number of hours worked, or sales commission which varies w.r.t the volume of sales effected by a salesperson.

In the given case, the cost incurred on gasoline, which is used as fuel for lawn equipment, would be classified as a variable cost if, such cost increases when lawn equipment is operated for more hours or falls when the same equipment is operated for lesser number of hours.

Thus, such costs should increase in direct proportion to the number of hours the lawn equipment is operared, to be classified as a variable cost.

5 0
2 years ago
Damien Carranza is an nonexempt employee of Verent Enterprises where he is a salesperson, earning a base annual salary of $30,00
Kay [80]

Answer:

Total weekly pay of August =   =  $ 1468.75

Explanation:

Annual salary = $30,000

Monthly Salary = $ 30,000/12=  $ 2500

Salary for 40 hours * ( 4 weeks) = 160 hours = $ 2500

Salary for 1 hour= $ 2500/160=  $ 15.625= $ 15.63

He worked additional 4 hours so pay for four hours is = 4 * 15.63=  $ 62.5

But as he is a non exempt  employee he is entitled to get 1.5 times higher than normal pay for over time so  

he will be paid $ 62.5 * 1.5= $ 93.75 for over time

Commission on Sales = 3 % of $25,000

                                    = $ 750

Weekly pay= $ 2500/4=  $ 625

Total weekly pay of August =  Weekly pay + Commission + Overtime

                                                =  $ 625 +  $ 750 +  $ 93.75

                                                 =  $ 1468.75

8 0
2 years ago
Malcolm's parents wanted him to be part of the family business—and malcolm planned to do so. then, at age 17, he decided to leav
Shtirlitz [24]
<span>He resisted identity foreclosure. In this part of self-discovery of a person's identity, the individual, usually in their late teenage years, has simply taken on the roles of their parents or friends without actually exploring other roles and identities. By going through an identity moratorium whereby they begin to question and explore their identities, only then can the individual have an identity achievement that is truly theirs.</span>
3 0
3 years ago
Shelby Corporation was organized in January to operate an air-conditioning sales and service business The charter issued by the
Vedmedyk [2.9K]

Answer: Please refer to Explanation

Explanation:

This is how the stockholders' equity section of the balance sheet at December 31 should look like,

STOCKHOLDERS'S EQUITY

Contributed Capital

Common Stock (29000 shares x $ 1 par) $29,000

Preferred Stock (19500 shares x $ 10 par) $195,000

Paid in Capital in excess of Common Stock at par ($841000 - $29000) $812,000

Paid in Capital in excess of Preferred Stock at par (19500 shares x ($39 - $10)) $565,500

Total Contributed Capital (sum of all of the above) $1,601,500

Retained Earnings ( $59,000 - $10,000) $49,000

Total Stockholder's Equity (Retained Earnings to contributed cap) $1,650,500

If you need any clarification do comment.

8 0
2 years ago
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