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kvasek [131]
3 years ago
14

Which is the best measure of risk for a single asset held in isolation (Stand Alone Investment), and which is the best measure f

or an asset held in a diversified portfolio
Business
1 answer:
borishaifa [10]3 years ago
4 0

Answer:

  • Single asset = Coefficient of Variation
  • Portfolio = Beta

Explanation:

When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.

As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.

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Anthony corporation reported the following amounts for the year: net sales$296,000 cost of goods sold 138,000 average inventory
VladimirAG [237]

In the given question GP ratio will be 53.4%

Here Net sales= 296000 $

Cost of goods sold= 138000 $

average inventory= 50000 $

Gross profit= Net sales- Cost of goods sold

                    =296000-138000

                     =158000

Formula for calculating Gross profit ratio is:

Gross profit/ Net sales *100

= 158000/296000*100

=53.4%

Gross profit ratio is a financial ratio which measures the performance and efficiency of a business by dividing its gross profit  by the total net sales. The gross profit ratio can also be expressed in  the form of percentage by multiplying the result by 100.

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4 0
2 years ago
If a bank pays 62 cents in non-interest expense per dollar of income, its _______ is equal to 0.62
Harrizon [31]
Answer: Efficiency ratio
6 0
3 years ago
The odd-lot trading theory advocates that small investorsA) tend to buy high and sell low.B) react in a manner which generally f
Umnica [9.8K]

Answer:

The correct answer is A) tend to buy high and sell low.

Explanation:

The theory of odd lots is a theory of technical analysis based on the assumption that the small individual investor who trades foreign lots is often wrong. Therefore, if sales of odd lots increase and small investors are selling a share, it is probably a good time to buy. Vice versa, when purchases of odd lots increase, the theory of odd lots would indicate a good time to sell.

8 0
4 years ago
Georgia was contacted by the CEO to research if adding a new data center makes sense for the organization from an economic and o
Korolek [52]

Georgia was contacted by the CEO to research if adding a new data center makes sense for the organization from an economic and operational stand point. Georgia agreed to perform "Feasibility Study".

<h3>What is Feasibility Study?</h3>

A feasibility study is an analysis that determines the chance of successfully completing a project by taking into account all pertinent economic, technical, legal, and scheduling issues.

The purpose of feasible study is-

  • An initial investigation of a prospective project or endeavour to assess its merits and viability is known as a feasibility study.
  • An unbiased analysis of a proposed project's technical, economic, financial, legal, and environmental issues is intended to be provided through a feasibility study.

There are four main elements that go into a feasibility study-

  1. Technical feasibility: The process of finding out how you're going to manufacture your good or service to see if it's feasible for your business is called technical feasibility.
  2. Financial feasibility: Your project's financial viability is determined by its financial viability. A cost/benefit analysis is part of a financial feasibility report and it examines
  3. Market feasibility (or market fit): Product-market fit occurs when an entrepreneur spots a gap in the market and develops a solution that consumers desire to purchase.
  4. Operational feasibility: The degree to which a proposed system resolves issues, seizes opportunities identified during scope definition, and satisfies requirements found during the requirements analysis stage of system development is measured by its operational feasibility.

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8 0
2 years ago
A disadvantage of a sole proprietorship is?
ivann1987 [24]
I think the answer is B, but I am not sure.
4 0
3 years ago
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