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2 years ago

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

Business

1 answer:

Firdavs [7]2 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.

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Edwin is a consultant working for a large engineering firm. He travels to visit clients and uses his laptop and a smartphone to

pychu [463]

Answer:

Mobile user.

Explanation:

A mobile user can be defined as a person that has access to relevant software through mobile device such as laptops, tablets, or mobile phones. They also communicate using mobile devices like smart phones or laptop over the internet.

Edwin is using the mobile user method in doing his job. He uses his laptop and phone to communicate bwith clients and his office. The laptop is used to handle work through business related software he has installed.

3 0

3 years ago

Every year, General Mills issues a report discussing how the firm has performed against its own standards of conscious marketing

goblinko [34]

Answer:

The correct answer is letter "D": control.

Explanation:

The control phase of the marketing planning process involves comparing the activities that the advertising team has developed with the expected set of actions established. This phase is important to identify if the firm as a whole is meeting the desired performance or if there are adjustments necessary to be made.

7 0

2 years ago

The term ___________________ is used to describe the common pattern whereby each marginal unit of a consumed good provides less

Phantasy [73]

Answer:

diminishing marginal utility.

Explanation:

The term diminishing marginal utility is used to describe the common pattern whereby each marginal unit of a consumed good provides less of an addition to utility than the previous unit.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility.

3 0

2 years ago

Brittney's employer matches 25% of her 401(k) contributions up to $1500.

murzikaleks [220]

Answer:

APEX - 1000

Explanation:

6 0

2 years ago

Read 2 more answers

Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reser

klio [65]

Answer: The correct answer is "a. decrease; decrease; decrease".

Explanation: Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reserve ratio. This causes excess reserves to decrease, the money supply to decrease, and the money multiplier to decrease.

8 0

2 years ago