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notka56 [123]
3 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]3 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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During the past six months, Ben sold goods that cost $43,500, his
cupoosta [38]

Answer:

for this problem the answer would be A. 3.08

Explanation:

Add the expenses and freight (3,500+1,750)

Subtract that from 43,500 (43,500-5250 which equals 38,250). Divide 38,250 by 12,400.

38,250÷12,400=3.08

6 0
3 years ago
The Highfield Company is going through a five-year of fast growth at 20% initially, and then it will grow at a perpetual rate of
slava [35]

Answer:

P0 = $66.6429 rounded off to $66.64

Option c is the correct answer

Explanation:

Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]

Where,

  • g1 is the initial growth rate
  • g2 is the constant growth rate
  • r is the required rate of return

P0 = 2* (1+0.2) / (1+0.1)  +  2 * (1+0.2)^2 / (1+0.1)^2  +  2 * (1+0.2)^3 / (1+0.1)^3  

+  2 * (1+0.2)^4 / (1+0.1)^4  +  2 * (1+0.2)^5 / (1+0.1)^5  +

[(2 * (1+0.2)^5 * (1+0.04)  /  (0.1 - 0.04)) / (1+0.1)^5]

P0 = $66.6429 rounded off to $66.64

7 0
3 years ago
Tetradic Solutions has been making purchases from Ribbon, Inc., for the last three years. Every three months, it makes the same
nalin [4]

Answer: modified rebuy

Explanation:

Tetradic's situation can be defined as the modified rebuy. Modified Rebuy refers to a purchasing situation whereby an individual or organization buys goods that they've bought before but then changes the supplier or some elements in the previous order.

Based on the question given, Tetradic Solutions alters his purchase as the order was modified. In modified rebuy, the specifications of the product, prices, and suppliers can be changed as well.

3 0
3 years ago
Wilma leads a task force charged with restructuring the order-processing system in the organization. The task force is composed
OLga [1]

Answer:

B. task-oriented leadership style .

Explanation:

Task-oriented leadership style -

It refers to the type of leader, who only target on the goal or project .

This type of leader is referred to as the task - oriented leadership style .

As from the very term, the person is only inclined towards his or her task

There type of leaders assign the tasks very clearly and making sure all the works are done on time with proper efficiency and accuracy .

These leader are very consult about the deadline and hence define all the task to get over before the deadline .

There type of leaders are very well organised and clear about the task .

Hence, from the given scenario of the question,

The correct answer is B. task-oriented leadership style.

6 0
4 years ago
For most businesses, annual straight line depreciation expense on the company's building is what type of cost?
Rom4ik [11]

For most businesses, annual straight line depreciation expense on the company's building is fixed cost.

A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.

Learn more about fixed costs here:

brainly.com/question/17100497

#SPJ4

6 0
1 year ago
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