All categories

3 years ago

Discuss how construction of a portfolio can lower the risk of an investor.

Business

1 answer:

Firdavs [7]3 years ago

7 0

Answer:

Simply put, the other meaning portfolio construction is diversification of risk. Portfolio construction is the one of simplest way of reducing risk without significantly affecting the returns.

Ways of diversifying risk includes Pension Funds, Mutual Fund, Equity, Stocks, Debt / Bonds, Retirement Saving, etc. If someone had made their investment in only one asset class, then there will be less returns available with high risk. while doing portfolio investment, it will give a systematic and controlled risky investment with higher return opportunities because some assets will perform well while other do poorly. but next year scenario could be changed or reversed. There are some thumb rules while doing portfolio investment, but it can be changed based on individual's personal goal.

You might be interested in

If both the production of goods and services increase and prices rise, then the change in nominal GDP

IceJOKER [234]

The answer is B. accurately reflect the change in production.

5 0

3 years ago

Luxury items in a budget come from _____. A. an income B. a deficit C. fixed expenses D. savings

Scrat [10]

Luxury items in a budget come from : D. Saving

People tend to buy luxury items after the other crucial needs are met, which means that it will be most likely that the budget came from the income that is intended for saving

hope this helps

3 0

3 years ago

Read 2 more answers

The typical horizontal flows of information in an accounts payable/cash disbursements process might include all of the following

harkovskaia [24]

Answer:

d. a copy of a receiving report is sent to the cashier

Explanation:

In the case of the horizontal flows with respect to the account payable or cash disbursements, it involved the invoice i.e. collected from the vendor, the voucher i.e. returned and the approved disbursement voucher is sent to the cashier but it does not involve the receiving report that sent to the cashier

Therefore the correct option is d.

3 0

3 years ago

Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is re

VMariaS [17]

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

Calculation for annual demand

Annual demand=138*358 days

Annual demand=49,404

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

Reorder point = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

4 0

3 years ago

The number of subscribers to five leading e-mail services is shown in the accompanying table:

kirill [66]

Empirical probability = (Number of outcomes in a given category) / (Total number of all outcomes)

6 0

4 years ago