2. Why is it important for people who own stocks and bonds to diversify their holdings? What...

Question:

2. Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial institution makes diversification easier?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Sep 27, 2024 07:01 AM

See More Questions

2. Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial institution makes diversification easier?
A non reactive/conservative contaminant is dumped on the ground level and it leaches to the groundwater vertically and takes half day for reaching the groundwater by travelling through unsaturated...
The vast majority of delegates at the American constitutional convention were what we would call economic elites. Poor people, farmers, women, African Americans and Native Americans were all excluded...
Why is a person able to remove a piece of dry aluminum foil from a hot oven with bare fingers, while a burn results if there is moisture on the foil?
2. Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial institution makes diversification easier?
Rocky Mountain Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31 have been...
Suppose that a particular cipher uses a 40-bit key, and the cipher is secure (i.e., there is no known shortcut attack). a.How much work, on average, is an exhaustive search attack? b.Outline an...
1. What is the role of the financial system? Name and describe two markets that are part of the financial system in our economy. Name and describe two financial intermediaries.
3. What is national saving? What is private saving? What is public saving? How are these three variables related?
What is underapplied overhead? Over applied overhead? What disposition is made of these amounts at the end of the period?
T5.4 Computer voice recognition software is getting better. Some companies claim that their software correctly recognizes 98% of all words spoken by a trained user. To simulate recognizing a single...
Below is a frequency table for the General Social Survey variable SOCOMMUN, which is based on the survey question, "How often do you spend an evening with someone who lives in your neighborhood?" In...
1. [5 marks] Consider L = lim n 6 1 -(+) i= Write down an integral with value L. Justify your expression.
Check Your Understanding Practise 1. Determine whether each relation is a function or is not a function. Give a reason for your answer. a) (1, 2), (0, 1), (1, 2), (2, 5) b) (3, 12), (4, 12), (5, 14),...
Original advertising strategy: Q1: [50,50,20,20,60] Q2: [10,10,30,60,80] Q3: [30,30,30,50,100] Q4: [50,90,20,20,10] Calculate the standard deviation for each quarter and variances After the new...
Four capacitors are connected as shown in Figure P26.21. (a) Find the equivalent capacitance between points a and b. (b) Calculate the charge on each capacitor if Vab = 15.0 V. 15.0 F 3.00 F 6.00 F
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
Senator Ernest Hollings once wrote that consumers do not benefit from lower-priced imports. Glance through some mail-order catalogs and youll see that consumers pay exactly the same price for...
The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $20, and the equilibrium quantity is 3 million T-shirts. One day, after reading Adam...
The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $20, and the equilibrium quantity is 3 million T-shirts. One day, after reading Adam...
Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 9% annual dividend and a $100 par value and was sold at $93.00 per share. In addition, flotation costs of $8.00...
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.9 million and net plant and...
the risk free rate of return is 1 0 % the expected rate of return on the market portfolio is 2 0 % and the stock of x - ron Corporation has a better coefficient of 2 . 6 xron pays out 6 0 % of its...

2. Why is it important for people who own stocks and bonds to diversify their holdings? What...

Question:

Step by Step Answer:

Principles Of Macroeconomics

Students also viewed these Business questions