Business, 24.12.2019 19:31 JayJay5817
Portfolio managers pick stocks for their clients portfolios based on the investment objective of the portfolio and several other sectors. one key consideration is each stock's contribution to portfolio risk and its statistical relationship with the portfolios other stocks. based on your understanding of portfolio risk, which of the following statements is true? check all that apply.
a) the market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio.
b) the risk in the portfolio will increase if more stocks that are negatively correlated with other stocks are added to the portfolio.
c) the portfolio's risk is not the weighted average of the individual stock standard deviations.
c) when returns on stock a increases, returns on stock b also increases. in general, this would mean that stocks a and b are positively correlated.
Answers: 2
Another question on Business
Business, 21.06.2019 15:00
The media specialist suggests a library reading program that will correlate highly with the teaching program and reward the students as they read. the rewards will be provided by the business community. a pencil carrier will be the reward for having read 25 books, a baseball cap the reward for having read 30 books, a tee shirt for 50 books, and a backpack for having read 100 books. the media specialist's suggestion is based on her knowledge that:
Answers: 1
Business, 22.06.2019 00:00
Which of the following is a disadvantage to choosing a sole proprietorship business structure? question 9 options: the owner has personal responsibility for the company's liabilities. the owner has to share the profits with partners. the owner is still liable for personal debts. the owner has to report to shareholders.
Answers: 1
Business, 22.06.2019 15:00
Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?
Answers: 1
Business, 22.06.2019 16:00
Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?
Answers: 1
You know the right answer?
Portfolio managers pick stocks for their clients portfolios based on the investment objective of the...
Questions
Mathematics, 25.11.2019 19:31
Mathematics, 25.11.2019 19:31
