1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svet-max [94.6K]
3 years ago
9

We can conclude from the above information that any rational, risk-averse investor would be better off adding Security AA to a w

ell-diversified portfolio over Security BB. a. True b. False
Business
1 answer:
romanna [79]3 years ago
4 0

Answer: False

Explanation:

First calculate the expected value for both securities:

Security AA:

= (0.2 * 30%) + (0.6 * 10%) + (0.2 * -5%)

= 6% + 6% + (-1%)

= 11%

Security BB

= (0.2 * -10%) + (0.6 * 5%) + (0.2 * 50%)

= -2% + 3% + 10%

= 11%

<em>They both have the same expected return so the investor will be indifferent. Statement is therefore false.</em>

You might be interested in
Define mortgage economics.​
DedPeter [7]

Answer:

Hello There!!

Explanation:

It is a type of loan that's used to finance property.It is an agrement between the person that borrows it and the person that lends it

hope this helps,have a great day!!

~Pinky~

7 0
3 years ago
About this app<br> What is the benefit of this app
Andrej [43]

Answer:

its fun to answer other people's questions when you know the answer and when you don't you can use Google and still get points for it. that's always fun is feeling smart. or you get help from others on questions you can either type up your question or take a picture of it!! there's many benefits.

Explanation:

unlike other apps like Socratic it only knows some answers in math class and history, but here there's smart people out there that are able to answer almost any questions for you, there's always someone in the world that knows on here!

7 0
3 years ago
Read 2 more answers
If you invest $5,000 at the beginning of each month, howmany months will it take for your account to grow to $250,000
mr Goodwill [35]

Answer:

50 Months

Explanation:

If there is no compound interest it would be 50 Months. You would divide 250,000 by 5,000 to get the months.

5 0
3 years ago
The first decision a manager must make in sales force management is​ _______________. A. recruitment and selection processes for
Gala2k [10]

Answer:

The correct answer is B

Explanation:

Sales force​ management is the system which is basically the information system and its objective is to help the organisation to grow better, faster through automating the work which the sales management and sales force.

So, the first and the foremost decision which a manager need to take in this system is to design or create the structure as well as the strategy of the sales force.

7 0
3 years ago
What is the primary role of consumers in a free market economy?
S_A_V [24]

Answer:

The consumer is the one who pays to consume the goods and services produced.

Explanation:

As such consumers play a vital role in the economic system of a nation. In absence of effective demand the producers would lack a key to motivation

4 0
3 years ago
Other questions:
  • 10. In earned value analysis (EVA), we found: SV = -$7,800 at certain point. If the project has a total budget = $65,000 and tot
    7·1 answer
  • Patton has acquired several other companies. Assume that Patton purchased Kate for $ 9 comma 000 comma 000 cash. The book value
    14·1 answer
  • The level of service exports worldwide increased more than _______ between 1980 and 2010
    14·1 answer
  • Suppose you were borrowing money to buy a car. Consider the following situations. Situation​ 1: Suppose the interest rate on you
    12·1 answer
  • Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as fol
    5·1 answer
  • Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the be
    10·1 answer
  • When Ira purchased 500 shares of prefeHallie owns 20% of the common stock of the Bean Brothers Coffee Company. The company annou
    14·1 answer
  • Write a summary of the 3 principles of economic activity
    8·2 answers
  • Latvia and Estonia are two countries. Assume that currently there is no trade between them. Each country has 100 units of labor.
    13·1 answer
  • Https://youtu.be/8EQRGf9GQPU DO NOT COPY THIS
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!