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Juliette [100K]
3 years ago
9

The benefits of portfolio diversification are highest when the individual securities have returns that Group of answer choices A

re counter-cyclical Vary indirectly with the rest of the portfolio Are uncorrelated with the rest of the portfolio Vary directly with the rest of the portfolio
Business
1 answer:
emmasim [6.3K]3 years ago
4 0

Answer:

Are uncorrelated with the rest of the portfolio

Explanation:

Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio

Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.

The highest benefit of diversification is when the securities are uncorrelated

Correlation is a statistical measure used to measure the relationship that exists between two variables.

1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases.

For example, there should be a positive correlation between quantity supplied and price

When there is a positive correlation, the graph of the variables is upward sloping

2. Negative correlation :  it mean that the two variables move in different direction. If one variable increases, the other variable decreases.

For example, there should be a negative correlation between quantity demanded and price

When there is a negative correlation, the graph of the variables is downward sloping

3. Zero correlation : there is no relationship between the variables

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Most economists believe the principle of monetary neutrality is a. relevant to both the short and long run. b. mostly relevant t
Trava [24]

Answer:

d. mostly relevant to the long run.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

The three (3) main functions of money all over the world are;

I. Medium of exchange.

II. Unit of account.

III. Store of value.

The principle of monetary neutrality typically based on the idea that changes in any stock of money would affect only nominal variables such as exchange rate, wages and price in the economy of a particular country.

Most economists believe the principle of monetary neutrality is mostly relevant to the long run.

4 0
2 years ago
Grocery, inc., and dave's market enter into a contract for the delivery of locally grown produce. the parties use a standard gro
BaLLatris [955]
<span>Grocery, inc., and Dave's market enter into a contract for the delivery of locally grown produce. The parties use a standard grocery, inc. form that contains some of the terms the parties agree on but not others. some of the produce spoils before it can be sold. Dave's refuses to pay for the spoiled goods. Grocery, inc. files a suit against Dave's, claiming that the buyer assumed the risk of the spoilage of the unsold produce. The court may allow evidence of this term if it finds that the parties' contract is not fully integrated.</span>
4 0
3 years ago
What two skills are important to a phlebotomist<br>​
Lisa [10]

Answer:

5 Qualities of a Phlebotomist

Compassion. A Phlebotomist's primary duty is drawing blood. ...

Detail-oriented. Phlebotomists must draw the correct vials of blood for the tests ordered, track vials of blood, and enter data into a database. ...

Hand–eye coordination. ...

Ability to Multitask. ...

Team Player.

Explanation:

etc

4 0
3 years ago
Read 2 more answers
When a nation's currency appreciates, its products become _________ to other countries, which ultimately _________ that nation's
shutvik [7]

Answer:

Explanation:more expensive/increases/less expensive/decreases

6 0
3 years ago
At the beginning of 2017, Aristotle Company acquired a mine for $970,000. Of this amount, $100,000 was ascribed to the land valu
viktelen [127]

Answer: $225,000

Explanation:

Given that,

Company acquired a mine = $970,000 of this amount,

Land value = $100,000 and remaining  portion to the minerals in the mine

Ore appear to be in the mine = 12,000,000 units

Aristotle incurred development costs = $170,000

fair value of its obligation = $40,000

ore were extracted = 2,500,000 units

Units sold = 2,100,000

Depletion\ per\ unit = \frac{Mine\ acquiring\ cost + Development\ cost + Fair\ value\ of\ land - land\ value}{Ore\ appear\ to\ be\ in\ the\ mine}

                                       =\frac{970,000 + 170,000 + 40,000 - 100,000}{12,000,000}

                                       = $0.09 depletion per unit

The total amount of depletion for 2017 =  depletion per unit × ore were extracted

                                                                 = $0.09 × 2,500,000

                                                                 = $225,000

7 0
3 years ago
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