Answer: Option B
Explanation: In simple words, diversification refers to the process of allocating capital in different investments to reduce the overall risk of the investment portfolio.
Therefore, analyst tries to make portfolio in such a way that securities will be negatively correlated. If two securities are negatively correlated then the decrease of one will lead to proportionate increase of others.
This ensures that the investors money will not be depreciated but at the same time the potential for abnormal returns also decreases.
Life expectancy is about 75 years.
One third:
75 : 3 = 25
So one generation is about 25 years.
2,000 : 25 = 80
Answer:
Approximately 80 generations have passed during the last 2,000 years.
Answer:
Sole Proprietorship
Explanation:
Charles is planning to start a sole proprietorship business. It is the most common form of business ownership.
This is the form of business owned, managed and operated by a single individual. Here, there is no distinction between the business and the owner. The owner of the business will have total control of all the profits incurred in the business and solely be responsible for all losses incurred as well.
Increase in capital gains yield
Answer:
$22,820
Explanation:
Calculation to determine Determine the present value of the par value of the bonds.
Discount rate =8%/2
Discount rate= 4%
Present value factor of 20 periods at 4%= ( 1 / 1.04^20 )
Present value factor of 20 periods at 4%=0.4564
Using this formula
Present value of the par value of the bond = Future value of the bond x Present value factor =
Let plug in the formula
Present value of the par value of the bond=$50,000 x 0.4564
Present value of the par value of the bond = $22,820
Therefore the present value of the par value of the bonds is $22,820
