Answer:
The correct answer is False.
Explanation:
Diversification is a method to reduce the risk of our portfolio by investing in different assets. Its main objective is to improve the profitability we obtain in relation to the risk we assume. By investing in assets that react differently to possible future scenarios, we can avoid extreme situations in our portfolio.
Although diversification does not ensure that we will not lose money, it is one of the main tools we can use to improve the long-term return on risk / return
Non-diversifiable risk, also called systemic risk, is that which is associated with the market as a whole. It is a risk that does not affect any particular company or asset, but when it occurs affects all the assets of a market. Examples of this type of risk would be increases in interest rates, inflation, wars, changes in government, etc. In short, we are talking about a type of risk that the investor must assume as inherent in the activity of investing. We cannot eliminate this risk through diversification.
Diversifiable risk, also known as non-systemic risk, is the specific risk to each company or asset in which we can invest. The most common sources of this type of risk are business risk and the financial risk of bankruptcy of a specific asset. As prudent investors, we can use diversification to limit the impact that such events can have on all our investments.
Answer:
A) nonrational decision making.
Explanation:
Catherine is taking a non-rational decision because a rational decision requires the correct assessment of risk, and benefits, and apparently, adding more gluten-free dishes has a high level of risk, and possibly a low level of benefits. A rational person would discard adding more gluten-free dishes because of that.
Answer:
d) $3: $6
Explanation:
The computation is shown below:
Before the one firm cheats, the firm revenue is
= $10 × $6
= $60
Before the one firm cheats, the firm revenue is
= $9 × $7
= $63
No cheating firm's revenue
= $9 × $6
= $54
Now in case of cheating, it is
= $63 - $60
= $3
And, in the case of non cheating, it is
= $60 - $54
= $6
Answer:
Dec. 31
Dr Interest expense $405,000
Cr Discount on bonds payable $5,000
Cr Cash $400,000
Explanation:
Preparation of the journal entry to record interest expense and bond premium amortization on December 31, 2022
Dec. 31
Dr Interest expense $405,000
($400,000+$5,000)
Cr Discount on bonds payable $5,000
[$5,000,000 - ($5,000,000 x 101/100)/10]
Cr Cash ($5,000,000 x 8%) $400,000
(To record interest expense and bond premium amortization)
Answer:
$20
Explanation:
Given that,
Total fixed cost = $4,200
Number of workers employs = 30
Wages = $160 per worker
Average product of labor = 2
Marginal product of last labor hired = 8
Marginal cost refers to the additional cost that has occurred to produce the additional unit of a commodity.
Here, from the given information, we can calculate the marginal cost of the last unit produced by the last worker is as follows:
= Wages per worker ÷ Marginal product of last labor hired
= $160 ÷ 8
= $20
