Stock prices and stand-alone risk You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). What kind of risk will you primarily be exposed to?
a. Portfolio risk
b. Stand-alone risk
Generally, investors would prefer to invest in assets that have: _________.
a. A high level of risk and low expected returns
b. A low level of risk and high expected returns

Answers

Answer 1

Answer and Explanation:

The risk that primarily be exposed is portfolio risk as the portfolio risk is the risk in which the risk is associated with the overall portfolio. On the other hand the stand alone risk is the risk that is associated with the single one only.

Since in the given situation, there is a different type of investment this represents that this is a portfolio risk

The investor always prefer for less level of risk and the high expected return in order to maximize the investment return with lesser risk level


Related Questions

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a

Answers

Answer:

debit to the Allowance account.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.

According to the Generally Accepted Accounting Principles (GAAP), when the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a debit to the allowance account.

Exclusive distributorships are: a. covered under the Robinson-Patman Act. b. illegal per se. c. questioned when there is no interbrand competition. d. all of the above

Answers

Answer:

The correct option is c. EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition

Explanation:

The process in which a manufacturer of a goods or product decide and as well authorize that their would be only one distributor who will be the seller of their products or goods in a territory, a region or a Market is what is called EXCLUSIVE DISTRIBUTORSHIPS reason been that the manufacturer of such product want to know how good their products is in the territory and to get feedback from the customer about their products in order to take important action in a situation where their is lapses about their products.

Secondly in a situation where their is no INTERBRAND COMPETITION the EXCLUSIVE DISTRIBUTORSHIPS are been questioned reason been that INTERBRAND COMPETITION

occur when a manufacturer or producer of a products differentiate their products from other products that is sold in the same market where their products is been sold example of INTERBRAND COMPETITION is Mirinda drink versus Fanta

Therefore EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition.

What are the arithmetic and geometric average returns for a stock with annual returns of:__________.
a) 4%,
b) 9%,
c) -6%,
d) 18%

Answers

Answer:

Arithmetic average return = 6.25%

Geometric average return = 5.89%

Explanation:

Annual returns of 4%,  9%,  -6% and  18%

Arithmetic average return of the stock = ∑ 4%,9%,-6%,and 18% / n

= 25%/4

= 6.25%

Geometric average return formula = x1,*x2*x3 .....^1/n  - 1

Geometric average return = 1.04*1.09*(1-0.06)*1.18^1/4 -1

Geometric average return = 1.04*1.09*0.94*1.18^1/4 - 1

Geometric average return  = 1.25789^1/4-1

Geometric average return = 1.0589 - 1

Geometric average return = 0.0589

Geometric average return = 5.89%

what should i do for college?

Radiology
Nursing
Crime Scene Technician
X-ray Technician
Vet Assistant
Dental Assistant
Accounting
Elementary Teacher
Pre-School Teacher

Answers

Crime scene technician

Recovery of Previously Written Off A/R
September 10-King pays the $200 previously
written off as uncollectible.
Prepare both journal entries.​

Answers

Answer and Explanation:

The journal entries are shown below

On Sep 10

Account receivable - king $200

            To Bad debt expense $200

(Being the reinstate previously written off account receivable is recorded)

Here account receivable is debited as it increased the assets and credited the bad debt expense as it decreased the expenses

On Sep 10

Cash Dr $200

    To Account receivable - king $200

(Being cash collection is recorded)

Here the cash is debited as it increased the assets and account receivable is credited as it decreased the assets

Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$15,700 1 6,400 2 7,700 3 4,500 4 4,100 What is the payback period?

Answers

Answer: 2.36 years

Explanation:

Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.

= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)

Add up the cashflows to find the year before payback;

= 6,400 + 7,700

= $14,100

Year before payback = 2

Amount remaining;

= 15,700 - 14,100

= $1,600

Payback period = 2 + (1,600/ 4,500)

= 2.36 years

Briefly explain why the data Brainard cites indicate that the Phillips curve is relatively flat.

Answers

Answer:

C. The flatter the Phillips​ curve, the less the inflation rate will​ rise, and the inflation rate has not risen much.

Explanation:

The following information is

There is a decline in the unemployment rate from 8.2% to 4.4%

The main inflation would be undershot 2 percent for 58 months

Based on the above information

The reason behind the Phillips curve be flat is that the lower rate of inflation would increased also the rate of inflation would not increased much as it should be increased

Therefore the option C is to be selected

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