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
Name and explain the relationship between triple bottom line social responsibility
KonstantinChe [14]
The three bottom line in the social responsibility are :

- Economic
- Social
- Environment

This three bottom lines could directly affect each other. For example, as the company experienced an economic growth, it could increase the quality of the social and environmental element around the company through various Corporate social responsibilities.
7 0
3 years ago
_____ is concerned with the interaction of the experimental treatment with other factors and the resulting impact on the ability
stellarik [79]

Answer:

External validity

Explanation:

6 0
3 years ago
Read 2 more answers
Christina's bank allows her employer to directly deposit her paycheck into her personal bank account. this service provided by c
11111nata11111 [884]

The service provided by Christina’s bank is called federal deposit insurance corporation service. Thus the second option is correct.

<h3>What is federal deposit Insurance Corporation?</h3>

The Federal Deposit Insurance Corporation is agencies which provides the services of the supply deposit insurance to depositors in American depository institutions and also provides the credit services which regulates and insures credit unions.

In the above scenario, Christina directly deposits her paycheck in the bank in her personal account. Thus the bank provides the services of Federal Deposit Insurance Corporation services to deposit her savings into the bank.

Learn more about federal deposit Insurance here:

brainly.com/question/827771

#SPJ1

8 0
2 years ago
If a business owner can produce more as a whole with an additional worker even if the marginal product associated with that work
lidiya [134]

Answer:

diminishing marginal returns

Explanation:

Based on the information provided within the question it can be said that this scenario indicates that there are diminishing marginal returns. Like mentioned in the question this refers to the decrease in marginal output as additional factors of production are introduced into the production process. Which in this case the additional factors would be more workers, since adding an additional worker seems to lower the marginal product.

8 0
3 years ago
Read 2 more answers
Which section of the business plan contains special information that you only share with those who really need to know
Tasya [4]
Financial analysis, because it is private.
3 0
3 years ago
Other questions:
  • Fama and French have suggested that many market anomalies can be explained as manifestations of ____________.A. regulatory effec
    9·1 answer
  • Using the data below, we are now going to use our supply/demand framework for US $ to model the movement in the euro per $ excha
    9·1 answer
  • Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,080 and variable exp
    11·1 answer
  • A city council designates funds in the enterprise fund for future equipment replacement. The enterprise fund should report this
    12·1 answer
  • When the concept of conservation is applied to the balance sheet, it results in (
    8·1 answer
  • Little Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The esti
    9·1 answer
  • Maureen's company sells first-aid kits for use in everyday situations. Because kits come in many sizes, with many features, and
    9·1 answer
  • Plz help this is timed
    11·2 answers
  • Aaron has recently started working at a credit union. Which motive might have prompted Aaron to join the credit union?
    15·1 answer
  • 4) Identify five main advantages of outsourcing.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!