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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>

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Compounding is known as the act of leaving your money and other accumulated interest in an investment for more than one period.

<h3>How do you explain the word compounding?</h3>

Compounding is known to be the method used when an interest is credited to a specific existing principal amount  and also to interest already paid.

It is the act of letting go of one's money and other compiled interest in an investment for a long time.

learn more about Compounding  from

brainly.com/question/2449900?source=archive

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2 years ago
Which protects a peaceful political organization from having to report its membership to the government?
tigry1 [53]
<span>Right of association-Gradpoint</span>
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3 years ago
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With brick-and-mortar toy stores closing, board game manufacturers expect to have trouble finding as many consumers interested i
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Answer:

This is how the market for board games would be affected in the explanation below

Explanation:

Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.

3 0
3 years ago
The CFO of company ABC wants to give every employee a 3% raise, but would like a report to confirm if this is possible. Write an
katrin [286]

Answer:

For such a report , the sql query required would be:

SELECT emp_id, curr_salary, curr_salary*1.03 AS inc_salary FROM Employee;

Explanation:

For such a report , the sql query required would be:

SELECT emp_id, curr_salary, curr_salary*1.03 AS inc_salary FROM Employee;

In the above  sql query  employee id is emp_id , curr_salary is the current salary column.  "curr_salary*1.03" is been made because an increment of 3% means salary + salary*3% , that is , salary*1.03.

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3 years ago
Assume an increase in global agricultural production of food due to technology while global population remains the same. Due to
MA_775_DIABLO [31]

Answer:

The equilibrium price falls and quantity increases

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When the supply of food rises without a corresponding increase in demand , there would be an excess supply.

When there's excess supply, prices fall and the quantity produced rises.

I hope my answer helps you

6 0
3 years ago
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