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never [62]
3 years ago
5

The amount of risk that will remain in a portfolio depends on the degree to which the stocks are exposed to:______

Business
1 answer:
Ivan3 years ago
8 0

Answer:

Common risks.

Explanation:

Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.

Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.

In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.

A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.

The amount of risk that will remain in a portfolio depends on the degree to which the stocks are exposed to common risks.

A common risk can be defined as a type of risk that affects the entirety of a business firm or company and as such can't be diversified.

Hence, in order to eliminate some of the risk associated with a portfolio, business owners combine stocks in a portfolio and the amount of risk that will remain or eliminated in a portfolio depends on the degree to which the stocks are exposed to common risks.

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If a costumer has a coupon for 30% off any skateboard and then another coupon for an extra 5% off a total purchase, you can simp
omeli [17]

Answer:

TRUE

Explanation:

It is true that if a costumer has a coupon for 30% off any skateboard and then another coupon for an extra 5% off a total purchase, you can simply add the coupons together to determine the discount as long as they are only buying one skateboard .

The above assertion is correct because the amount of the skateboard will be the same as the amount for the sale, hence both percentages making up 35% can be applied to the skateboard amount.

<u>However if they buying more items than just a skateboard, the total amounts of the different items of purchase has to be added before applying the discount percentage.</u>

<u />

3 0
3 years ago
Read 2 more answers
Where do banks get money to lend to borrowers?
PolarNik [594]

Answer:

They create the money they lend to borrowers.

Explanation:

:) Let me know if this helps!

(Are you talking about commercial banks?)

7 0
3 years ago
A decrease in money demand for some reason other than a change in the price level causes _________.
goldenfox [79]

Answer:

A

Explanation:

3 0
2 years ago
Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit, and variable costs are $110 per unit. Compute
tia_tia [17]

Answer:

The level of sales in units is 7,400

Explanation:

The computation of the level of sales in units is shown below:

= (Fixed cost + target income) ÷ (Contribution margin per unit)

= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)

= $392,200 ÷ $53 per unit

= 7,400 units

The Contribution margin per unit is

= Selling price per unit - variable cost per unit

Henec, the level of sales in units is 7,400

7 0
3 years ago
On March 1, 2019, Baltimore Corporation had 60,000 shares of common stock outstanding with a par value of $5 per share. On March
Eva8 [605]

Answer:

The retained earning would be debited by ($60,000)

Explanation:

According to the given data we have the following:

Number of shares outstanding=60,000

par value of $5 per share

stock dividend declared=cc

Therefore,  to calculate the amount either (debited) or credited to retained earnings we would have to make the followin calculation:

Dividend value=Number of shares outstanding×par value of $5 per share×stock dividend declared

Dividend value=60,000×$5×20%

Dividend value=($60,000)

Therefore, as the dividend paid reduces retained earnings, the retained earning would be debited by ($60,000)

3 0
3 years ago
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