Ask Question
BusinessBusiness
25 June, 01:39

Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big company. this is an attempt to: the answer is

+4
Answers (2)
  1. 25 June, 02:07
    0
    Amelia is attempting to diversify her portfolio in order to spread her risk. By dispersing her investment money among 5 different companies rather than putting it all into one, she lessens the chance of losing all her money in the event a company fails or does badly in the stock market. She is heeding the common expression that advises, "Don't put all your chickens in one basket".
  2. 25 June, 02:28
    0
    The fact that Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big company is example of an attempt to

    eliminate firm-specific risk though diversification. The term diversification is technique used in management that includes mixing a wide variety of investments (in this case shares), while firm-specific risk is the risk that corresponds to risks that are very specific to a certain company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big company. this is an attempt to: the answer is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to induce prompt payment. Such a discount is called a (n) trade discount. nominal discount. enhancement discount.
Answers (1)
In the decision-making process, which step occurs after the need is determined?
Answers (1)
What questions do you hope to answer about career exploration as you study this course
Answers (1)
An LCD screen is purchased to be used in the manufacturing of a digital watch. The standard price for the LCD screen used is $40.00. During the month of February, 3,400 screens were purchased and used.
Answers (1)
When a student enters college, tuition is the
Answers (1)
New Questions in Business
Darius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables, but he also is evaluating each product's reputation, warranty, his own experience with the brand and, of course, the
Answers (1)
If Canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the US has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries?
Answers (1)
Recording Standards in Accounts The Assembly Department produced 5,000 units of product during March. Each unit required 2.20 standard direct labor hours.
Answers (1)
Jennifer's Boutique has 2,100 shares outstanding at a market price per share of $26. Sally's has 3,000 shares outstanding at a market price of $41 a share. Neither firm has any debt. Sally's is acquiring Jennifer's for $58,000 in cash.
Answers (1)
Why are protective tariffs considered negative? They cause imports increase. They cause imports to decrease. Countries usually raise tariffs in retaliation. Exports often decrease. They cause people to buy more goods produced by their home country.
Answers (1)
Home » Business » Amelia decides to buy 10 shares each of 5 companies instead of investing in 50 shares of a big company. this is an attempt to: the answer is
Sign Up Forgot Password?