The principle of diversification tells us that:
A. concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk.
B. concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk.
C. spreading an investment across five diverse companies will not lower the total risk.
D. spreading an investment across many diverse assets will eliminate all of the systematic risk.
E. spreading an investment across many diverse assets will eliminate some of the total risk
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The principle of diversification tells us that: A. concentrating an investment in two or three large stocks will eliminate all of the ...” 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
Most international business messages tend to be written in an informal, conversational manner. should be written following generally accepted principles for writing American business letters. use active-voice constructions.
Answers (1)
On January 1, 2018, Debtor Corporation issued $2,000,000 of 20-year, 8% bonds at 96, when the market rate of interest was 8.5%. The bonds pay interest annually on December 31. The company uses the effective interest method of amortization.
Answers (1)
Juggernaut Satellite Corporation earned $18 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday.
Answers (2)
Assume that the building the company wants to build is a manufacturing plant and that it was going to be built in a semi-residential neighborhood.
Answers (1)
A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a (n) :
Answers (1)
New Questions in Business
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
involves matching the candidate's intellectual and physical skills to those of the job being filled. a. Person-organization fit b. Cognitive analytics c. Ability-job fit d. Personality-ability fit e. Personality-job fit
Answers (1)
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%.
Answers (2)
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock.
Answers (1)
True or False: An interest-bearing account is an account that generates interest income on the available balance in the account. → False
Answers (1)