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Harlamova29_29 [7]
2 years ago
13

Under the "Don't Put all you eggs in one basket" analogy, the eggs represent individual investments and the basket represents th

e overall investment portfolio. Speading your "eggs" allows you to
Business
1 answer:
julsineya [31]2 years ago
6 0

Answer:

Minimize the possibility that bad luck for a single investment adversely affects your overall portfolio

Explanation:

Diversification

This is simply know as a form of practice that involves putting or dividing the money an individual invests into several different types of investments in order to minimize risk. It uses the analogy "Don't put all your eggs in one basket."

Investing

This is simply known as the act of keeping money aside to boast wealth over time for long-term financial goals such as retirement.

Investment

This is simply regarded as when an individual puts his/her money for long-term growth.

The point of a diversified portfolio is that the spreading of your money, and not putting all your eggs in one basket, reduces your risk so if one does bad you have the other to fall back on.

You might be interested in
A first step toward understanding organizational markets is recognizing the differences between industrial, reseller, and govern
zaharov [31]

Answer: True

Explanation:

To understand organizational markets, one must first realize that there are three main types of them: Industrial, reseller and government.

Industrial markets enable businesses to transact with each other. They trade raw materials and other goods to each other and process them to finished goods.

The reseller market does not involve any processing but rather firms buying from one and selling to another as middlemen.

The last market is the Government market. Any arm of government that purchases goods and services fall here including at local, state or federal level.

7 0
3 years ago
An insurance policy sells for ​$1200. Based on past​ data, an average of 1 in 100 policyholders will file a ​$10 comma 000 ​clai
Tanzania [10]

Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

Expected profit or loss = -22,200,000

Expected loss to the customer = -$22.2 m

Expected profit for the company = $22.2m

3 0
3 years ago
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are
romanna [79]

Answer:

The need for organisations (which may be governmental or non-governmental) to improve the condition of living of people and protect their environment whilst they pursue increased profitability has been termed

The Triple Bottomline.

It is also referred to by economists as the 3P - People, Planet and Profit.

It speaks to the fact that other than the usual making financial success the sole metric of measurement by which organisations are evaluated, their impact on people and the environment should be considered as well.

In simple terms, a firm should be termed more successful than others if it's activities besides being profitable also impacts positively on people and protects if not improves the environment.

Cheers!

7 0
3 years ago
Timmy Company's comparative balance sheet at January 31, 2017, and 2016. reports the following (in millions):
Irina-Kira [14]

Answer:

The Accounting Equation states that;

Assets = Liabilities + Equity

Equity as at 2016 = Assets - Liabilities

= 50 - 13

= $37 million

Equity as at 2017 = Assets - Liabilities

= 77 - 18

= $59 million

1. Timmy issued $13 million of stock and declared no dividends.

<em>The Net Income ( loss) will be the figure that gives the Statement of Equity a figure of $59 million.</em>

Net Income = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016  - Issuance of stock

= 59 - 37 - 13

= $9 million

Total stockholders' equity, January 31, 2016  ................ 37

Add: Issuance of stock ......................................................... 13

Net income  ......................................................................9

Less: Dividends declared......................................................0

Net loss.......................................................................................0

Total stockholders' equity, January 31, 2017...................59

2. Timmy issued no stock but declared dividends of $17 million.

Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016  + Dividends Declared

= 59 - 37 + 17

= $39 million

Total stockholders' equity, January 31, 2016  ................ 37

Add: Issuance of stock ......................................................... 0

Net income  ......................................................................39

Less: Dividends declared......................................................(17)

Net loss.......................................................................................0

Total stockholders' equity, January 31, 2017...................59

3. Timmy issued $20 million of stock and declared dividends of $27 million.

Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016  + Dividends Declared -  Issuance of stock

= 59 - 37 + 27 - 20

= $29 million

Total stockholders' equity, January 31, 2016  ................ 37

Add: Issuance of stock ......................................................... 20

Net income  ......................................................................29

Less: Dividends declared......................................................(27)

Net loss.......................................................................................0

Total stockholders' equity, January 31, 2017...................59

7 0
3 years ago
As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated de
Mrrafil [7]

Answer:

This is a repeat question on Brainly but here you go.

<h2><em>$51,500 </em></h2>

Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent

So, the equipment amount should be debited at <em>$51,500 </em> instead of the original cost or the replacing cost

4 0
3 years ago
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