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3 years ago

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 the cpi is 120 in year 1 and 150 in year 2, then the rate of inflation from year 1 to year 2 is:

mixas84 [53]

The inflation can be measured by the percentage of change in the CPI.

From the givens:
The change between year 1 and year 2 = 150 - 120 = 30
Now, the percentage of change can be calculated as follows:
% of change = (change in CPI/original CPI) * 100
% of change = (30/120) * 100 = 25%

From, the definition, inflation is measured as the percentage in change of CPI, therefore, inflation = 25%

4 0

4 years ago

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations.

blagie [28]

Answer:

a. Amber Corporation donated inventory of clothing (basis of $138,500, fair market value of $173,125) to a qualified charitable organization that operates homeless shelters.

charitable donations are valued at fair market value, in this case that equals $173,125

b. Brass Corporation donated stock held as an investment to Western College (a qualified organization). Brass acquired the stock three years ago for $70,800, and the fair market value on the date of the contribution is $113,280. Western College plans on selling the stock.

Again, we must use the fair market value to record donations, in this case = $113,280.

c. Ruby Corporation donates a sculpture held as an investment and worth $200,800 to a local museum (a qualified organization), which exhibits the sculpture. Ruby acquired the sculpture four years ago for $80,320.

use fair market once more, = $200,800

Explanation:

When you donate assets to qualifying charities, it is always better to do it by donating the itself, not selling it before and then giving the money. If you sell the asset, you will owe capital gains taxes (either long or short term). By donating the asset directly, you avoid capital gains taxes.

4 0

3 years ago

You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(

kvv77 [185]

Answer:

since there are no columns, I will write it down:

1. Stockholders invest $90,000 cash to start the business.

Cash increases by 90,000

Common stock increases by 90,000

2. Purchased three digital copy machines for $400,000, paying $100,000 cash and signing a 5-year, 6% note for the remainder.

Copy machines increases by 400,000

Cash decreases by 100,000

Notes payable increases by 300,000

3. Purchased $5,000 paper supplies on credit.

Supplies increases by 5,000

Accounts payable increases by 5,000

4. Cash received for photocopy services amounted to $7,000.

Cash increases by 7,000

Service revenue increases by 7,000

5. Paid $500 cash for radio advertising.

Advertising expense increases by 500

Cash decreases by 500

6. Paid $800 on account for paper supplies purchased in transaction 3.

Cash decreases by 800

Accounts payable decreases by 800

7. Dividends of $1,500 were paid to stockholders.

Dividends increase by 1,500

Cash decreases by 1,500

8. Paid $1,200 cash for rent for the current month.

Rent expenses increases by 1,200

Cash decreases by 1,200

9. Received $2,000 cash advance from a customer for future copying.

Cash increases by 2,000

Unearned revenue increases by 2,000

10. Billed a customer for $450 for photocopy services completed

Accounts receivable increases by 450

Service revenue increases by 450

4 0

3 years ago

Riverview Inc. reports the following balances and amounts. The following information is presented in random order. Accounts paya

RSB [31]

Answer:

The earning per share is $1.3 per share

Explanation:

For computing the earning per share, we need to apply the formula of Earning per share which is shown below:

Earning per share = (Net income - Dividends paid to preferred shareholders) ÷ average common shares

= ($36,000 - $10,000) ÷ $20,000 shares

= $1.3 per share

The other items which are mentioned in the question are not relevant. Kindly ignored it.

7 0

3 years ago

Bob has been training with you for three months. He has lost 15 pounds (7 kg) and has changed his eating habits. A new position

Musya8 [376]

Answer: Select smaller portions, order grilled items vs. fried, and limit sauces

Exercise often

Explanation:

Dieting asides it involving food has great discipline that is most important. In as much as an individual stops some meal or limit taking some, he needs to be consistent in the decision to stick by appying discipline in eating irrespective of their location, with the goal that was in the mind when the process began. Bob would have to continue with the same routine of food that made him loose weight and what I'll recommend for him would be Select smaller portions, order grilled items vs. fried, and limit sauces. Then, exercise often.

8 0

3 years ago