Why is an investment portfolio containing a mix of stocks and bonds less risky than one containing a single asset class?
A. Because stocks and bonds are negatively correlated.
B. Because bonds typically have a high variance and stocks typically have a low variance.
C. Because the markets for stocks and bonds tend to move in the same direction at the same time.
D. Because stocks and bonds are positively correlated.

Answers

Answer 1

Answer: A. Because stocks and bonds are negatively correlated

Explanation:

An investment portfolio containing a mix of stocks and bonds is less risky than one containing a single asset class because stocks and bonds are negatively correlated.

In business, diversification of ones portfolio is essential in order to mitigate risks. Stocks and bonds are negatively correlated as one goes up, the other falls. Therefore bonds and stocks compensate each other.


Related Questions

Click this link to view O*NET's Work Activities section for Architects. Note that common activities are listed toward the
top, and less common activities are listed toward the bottom. According to O*NET, what are common work activities
performed by Architects? Check all that apply.
repairing and maintaining mechanical equipment
communicating with persons outside of the organization
drafting, laying out, and specifying technical devices, parts, and equipment
using dynamic flexibility to repeatedly bend, stretch, or twist with arms or legs
using night vision and peripheral vision
making decisions and solving problems
thinking creatively

Answers

Answer:

communicating with persons outside of the organization

drafting, laying out, and specifying technical devices, parts, and equipment

making decisions and solving problems

thinking creatively

Answer:

B, C, F, G

Explanation:

See attachment

Select the correct answer
Which factor increases the risk of is project delays?
Options on picture

Answers

Answer:

B. Shortage of technical staff

Explanation:

It's 100% not D. I took the test and got it wrong

You own a portfolio that has $2,100 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks are 13 percent and 17 percent, respectively, what is the expected return on the portfolio?

Answers

Stock A: $2,100, 13%
Stock B: $3,200 17%

Stock A-> 2100 x .13 = 273
Stock B -> 3200 x .17 = 544

Add
273 + 544 = 817

Expected return is $817

I purchased my home for $297,000 in 2015. Today it is worth approximately $520,000. What has my compounded annual rate of return been on this investment over the five years that I have owned my home?

a. 68.35%
b. 13.67%
c. 10.98%
d. 54.9%

Answers

Answer:

A because Brainly is here for kids to cheat on.

Explanation:

The answer is A) 68.35%

Mary Cooper just purchased 120 shares in the All-American Fidelity Fund. The purchase cost for each share was $30. If this fund charges a 4 percent load, what is the total amount of commission she will pay the investment company?

Answers

Answer: $144

Explanation:

First calculate how much she spent to buy the shares;

= 120 * 30

= $3,600

The fund charges a 4% load so the total compensation paid is;

= 3,600 * 4%

= $144

HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.
A) product line pricing
B) captive pricing
C) price bundling
D) reference pricing
E) prestige pricing

Answers

Answer:

B)) captive pricing

Explanation:

From the question, we are informed about how HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of captive pricing. Pricing is essential in business because production process isn't complete until goods reach to the consumer. pricing strategy utilize the strategy of using advantage over a product so that large volume of customers can be drawn to patronize the product. Captive product pricing can be regarded as the pricing of goods which can be described as goods that posses a “core product” as well as number of “accessory products.”

Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $636,400.

Answers

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

A machine costing $37,500 with a 5-year life and $2,300 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Answers

Answer:

11,250

Explanation:

What are the difference between aims and goal​

Answers

Answer:

Goal is a set target that a person wants to achieve, while Aim is the determined course a person sets to achieve a target.

Joan has the following assets and liabilities: Credit card balance $1,000 Cash $200 Government bonds $3,000 Checking $300 Car loan balance $10,000 Car $15,000 What is Joan's money demand?A) $200 B) $300 C) $500 D) $1,000 E) $11,000

Answers

Answer:

C. $500

Explanation:

Money demand can be defined as the part of an assets in which a person is ready to hold as cash . The money can however be used to purchase goods or services.

Money demand can be denoted as

= Cash balance + Checking account balance.

Given that;

Cash balance = $200

Checking account balance = $300

Money demand = $200 + $300

Money demand = $500

Therefore, Joan's money demand is $500.

Firm B has a 12% ROE. Other things held constant, what would its expected growth rate be if it paid out 25% of its earnings as dividends?

Answers

Answer:

the expected growth rate is 9%

Explanation:

The computation of the expected growth rate is shown below:

As we know that

Retention ratio = (1 - dividend payout ratio)

So,  

Retention ratio = (1  -0.25) = 0.75

Now

Growth rate = Retention ratio × ROE

= 0.75 × 12

= 9%

hence, the expected growth rate is 9%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

This year Mary received a $600 refund of state income taxes that she deducted on her tax return last year. Mary included a total of $8,450 of state income taxes when she itemized deductions last year. What amount of the refund, if any, should Mary include in her gross income this year?

Answers

Answer:

$600

Explanation:

If instead of itemizing, Mary had elected the standard deduction last year, then she wouldn't have to include any state income tax refund on her current gross income. But since she itemized her deductions and actually deducted these $600 from her gross income last year, she must include them in he current gross income.

True or False: If Nick's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $60,000 would result in a decrease in the production quantity, but an increase in total revenue.

Answers

False. As the market price for a good falls the demand rises for a product. Hence the the production quantity of a good will rise long with total revenue, as revenue is the summation of costs and profits.

Define uncertainty. What are some of the basic causes of uncertainty in engineering economy studies?

Answers

Answer:

A decision under uncertainty is a decisional problem.

In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year’s inflation rate? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation? What term do economists use to describe this second outcome?

Answers

Answer and Explanation:

The computation is shown below:

The Rate of inflation is

= (CPI this year - CPI last year) ÷ (CPI last year) × 100

= (121 - 110) ÷ 110 × 100

= 10%

Now for other

The Rate of inflation is

= (CPI this year - CPI last year) ÷ (CPI last year) × 100

= (108 - 110) ÷ 110 × 100

= -1.81%

Here the term i.e. used for the negative rate of inflation is deflation

The same is to be considered

The risk associated with dispersion around an expected value (e.g., expected return) is measured by the:_______

a. beta coefficient
b. ​range (i.e., high‑low values)
c. ​standard deviation
d. ​debt to total assets (i.e., the debt ratio)

Answers

Answer:

C. Standard deviation

Explanation:

What kind of ideas are not patentable according to the U.S. Patent Office?

Answers

1. A discovery, scientific theory or mathematical method.

2. An aesthetic creation.

3. A scheme, rule or method for performing a mental act, playing a game or doing business, or a computer program.

4. A presentation of information.

5. A procedure for surgical or therapeutic treatment, or diagnosis, to be practised on humans or animals.

Answer:

A presentation of information

Explanation:

Investing activities do not include the:

a.Purchase of plant assets.

b.Loaning of money in exchange for notes receivable.

c.Issuance of common stock.

d.Sale of plant assets.

e.Sale of short-term investments other than cash equivalents.

Answers

Answer:

c.Issuance of common stock.

Explanation:

Investing activities lead to an increase in business cash flows.  Investing involves spending money with the expectation of making higher returns.

Some investing activities include

1. Purchase or acquisition of assets to be used in the production process.

2. Sale of business assets

3. Acquisition or sale of other business

Issuing of common stocks is not considered an investment option. Common shares are issued when companies need to raise additional capital.  Issuance of common shares is a financing activity.

Controllable margin is defined as A.sales minus variable costs. B.sales minus contribution margin. C.contribution margin less controllable fixed costs. D.contribution margin less noncontrollable fixed costs.

Answers

Answer:

answer d is correct is correct

Question 2 of 10
Which action is a bank most likely to take when evaluating a loan application
from a person with a low credit score and a poor credit history?
A. Reducing the interest rate to encourage the person to borrow
more
B. Increasing the value of the loan to earn more interest over time
O C. Denying the loan because the person is unlikely to pay it back
O D. Requiring the person to take more than one loan at a time
SUBMIT
PREVIOUS

Answers

Answer:

C is the correct answer

Explanation:

Denying the loan because the person is unlikely to pay it back is a bank most likely to take when evaluating a loan application from a person with a low credit score and a poor credit history.

What is loan application?

Borrowers apply for loans via a loan application. Through the loan application, borrowers provide vital financial information to the lender.

The loan application is crucial in determining whether or not the lender will approve your funding or credit request.

Thus, option C is correct.

For more details about loan application, click here

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Jane wrote a check for $10, but was so careless and negligent that it was easy to alter. She gave this check to Ben, who changed the check to read $1,000. The alteration was pretty obvious to anyone who saw the check, but when he cashed the check at Jane’s bank, they deducted $1,000 from Jane’s account. If Jane sued the bank for the loss, would she be able to recover? If so, how much could she recover, and how would that be determined?

Answers

Answer: Yes, she will be able to recover her full loss.

Explanation:

Goodwill is: Group of answer choices Amortized over the greater of its estimated life or forty years. Only recorded by the seller of a business. The excess of the fair value of the consideration exchanged for the company over the fair value of net assets acquired. None of these.

Answers

Explanation:

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. Goodwill does not include identifiable assets that are capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability regardless of whether the entity intends to do so. Goodwill also does not include contractual or other legal rights regardless of whether those are transferable or separable from the entity or other rights and obligations. Goodwill is also only acquired through an acquisition; it cannot be self-created. Examples of identifiable assets that are goodwill include a company’s brand name, customer relationships, artistic intangible assets, and any patents or proprietary technology. The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the net value of the assets minus liabilities. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched. Under US GAAP and IFRS, goodwill is never amortized, because it is considered to have an indefinite useful life. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to bring it down to its fair market value. However, an increase in the fair market value would not be accounted for in the financial statements. Private companies in the United States, however, may elect to amortize goodwill over a period of ten years or less under an accounting alternative from the Private Company Council of the FASB.

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?

Answers

Answer:

If investors require a return of 10.5 percent on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?

P₀ = Div₁ / (Re - g)

Div₁ = $2.028Re = 10.5%g = 4%

P₀ = $2.028 / (10.5% - 4%) = $31.20

What will the price be in three years?

P₃ = Div₄ / (Re - g)

Div₄ = $2.281Re = 10.5%g = 4%

P₃ = $2.281 / (10.5% - 4%) = $35.37

In 15 years?

P₁₅ = Div₁₆ / (Re - g)

Div₁₆ = $3.652Re = 10.5%g = 4%

P₁₅ = $3.652 / (10.5% - 4%) = $56.19

A company desires to sell a sufficient quantity of products to earn a profit of $300000. If the unit sales price is $32, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $300000?a) 168,750 unitsb) 90,000 unitsc) 112,500 unitsd) 67,500 units

Answers

Answer:

55,000 units

Explanation:

Calculation for how many units must be sold

Using this formula

Units to be sold=Total fixed costs +Profit/(Sales price-Variable cost )

Let plug in the formula

Units to be sold =($800,000+$300,000)/($32 -$12)

Units to be sold=$1,100,000/$20

Units to be sold=55,000 units

Therefore units that must be sold to earn net income of $300000 will be 55,000 units

Discuss about Financial System and its impact on the strategic Financial Management

Answers

Answer:

The modern Financial System is based on a central bank that controls the monetary base (but not the money supply), and in fractional reserve banking. The implicaton of this, is that banks loan out some of the money that they obtain as deposits, and in this process they create money.

Explanation:

The Financial System is influenced by this process of money creation, because when the money that circulates in the economy (the money supply) changes, interest rates also change.

Interest rates are the price of investment, and the most important indicator that a financial manager has to take into account when making a financing decision.

Financial managers must also take into account the different types of financial institutions that exist, from hedge funds, to commercial banks, to cooperatives, and the different types of securities, from stocks, to bonds, to derivatives and futures.

what do you mean by business organisation ​

Answers

Answer:

Business organization, an entity formed for the purpose of carrying on commercial enterprise.Such an organization is predicated on systems of law governing contract and exchange, property rights, and incorporation.

Which source of funding would be most appropriate if you were starting a
business from your home and you only needed to buy a computer and pay for
Internet service to get started?
A. Selling property
B. Applying for a bank loan
C. Using a credit card
D. Seeking venture capital

Answers

Answer:

a credit card would be better ..cause it has a convenient pay method

The source of funding that would be most appropriate if we were starting a business is using a credit card. The correct option is c.

What is a credit card?

A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt that is to promise to the card issuer to pay them for the amounts plus the other agreed charges.

The card issuer is generally a bank or credit union, creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards.

Most cards are plastic, but some are metal cards, stainless steel, gold, palladium, titanium, and a few gemstone-encrusted metal cards.

Learn more about credit, here:

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The assumptions of the production order quantity model are met in a situation where annual demand is 3650​ units, setup cost is​ $50, holding cost is​ $12 per unit per​ year, the daily demand rate is 20 and the daily production rate is 100. What is the production order quantity for this​ problem?

Answers

Answer:

156

Explanation:

Production order quantity can be calculated by: [tex]\sqrt{2*K*D / h*(1-x)}[/tex]

Where, K = Setup Cost , D = Annual demand, H = Holding cost , x = d/p (daily demand rate/ daily production rate).

Production order quantity = [tex]\sqrt{2 * 50 *3650/12 * (1 - 20/100)}[/tex]

Production order quantity = [tex]\sqrt{2 * 50 * 3650/12 * (1 - 0.2)}[/tex]

Production order quantity = [tex]\sqrt{2 * 50 * 3650/12 * 0.8}[/tex]

Production order quantity = [tex]\sqrt{2 * 50 * 304.17 * 0.8}[/tex]

Production order quantity = [tex]\sqrt{24333.6}[/tex]

Production order quantity = 155.9923075026458

Production order quantity = 156 (rounding off)

So, the production order quantity for this​ problem is 156

Dartmouth Assessment Centre screens and trains employees for a computer assembly firm in Halifax. The progress of all trainees is tracked and those not showing the proper progress are moved to less demanding programs. By the tenth repetition, trainees must be able to complete the assembly task in 1 hour or less. Torri Olson-Alves has just spent 5 hours on the fourth unit and 4 hours completing her eighth unit, while another trainee, Julie Burgmeier, took 4 hours on the third and 3 hours on the sixth unit. Should you encourage either or both of the trainees to continue? Why?

Answers

Answer:

Discourage Torri from continuing. Encourage Julie to continue.

Explanation:

The progress of all trainees is tracked. Those not showing good progress are moved to less demanding programs. This means that there is hope of still doing/getting a job, if they don't pass this test.

REQUIREMENT: By the 10th time doing the test, trainees must be able to complete the task in a maximum of 1 hour.

1st Trainee: Torri Olson-Alves

5 hours on Unit 4;   4 hours on Unit 8

Should Torri be encouraged to continue? NO.

There are 10 units or repetitions in all. If Torri spends 5 hours on Unit 4 and spends 4 hours on Unit 8, then Torri is slow or isn't making much progress. After 4 repetitions, her marginal product only increased by an hour. She most likely won't make it to 1 hour by the 10th repetition.

2nd Trainee: Julie Burgmeier

4 hours on Unit 3;   3 hours on Unit 6

Should Julie be encouraged to continue? YES.

Julie makes a progress of 1 hour after 3 repetitions. We can predict that after another 3 repetitions (on Unit 9) progress would be made again and by Unit 10, she would have met the required benchmark.

Koby, age 16, works after school at FastFood from 4 p.m. until 11 p.m. On Friday night, therestaurant manager sees that Koby is exhausted, but insists that he remain until 4:30 a.m.,cleaning up, then demands that he work Saturday morning from 8 a.m. until 4 p.m. On Saturdayafternoon, as Koby drives home, he falls asleep at the wheel and causes a fatal car accident.Should FastFood be liable? What important values are involved in this issue? How does theGolden Rule apply?

Answers

Answer:

find answer in the explanation below

Explanation:

Koby is 16 and that means he is under age for a start. That initial statement makes Fastfood liable.

As it can be seen from the question, the golden rule applies to Koby's case as it is clear he has other things to do with his time.

Primarily, he is a student and that means he has school work to do alongside putting in some hours at Fastfood. But then, he still has the right to be treated right which in this case means him getting some rest. It is therefore safe to say that the manager of Fastfood is trying to take advantage of Koby and should have given him rest.

if he had gotten some rest, he wouldn't have fallen asleep while driving and been in the accident.

Cheers

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