Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 16, 2024

Question 8 7 pts Which of the following statements is true? Your portfolio of 20 stocks in the same industry is well diversified. Labor strike

Question 8 7 pts Which of the following statements is true? Your portfolio of 20 stocks in the same industry is well diversified. Labor strike for a company is called a systematic risk. A source of systematic risk is the change in the interest rate by the Federal Reserve Bank. Most of the portfolio's systematic risk is eliminated after 30 randomly chosen stocks are included in the portfolio. If you have two stocks that always move in the same direction in your portfolio, you can still achieve diversification effect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely

18th edition

1260190080, 1260190083, 978-1259917059

Students also viewed these Finance questions

Question

2.46 Packaging Hamburger Meat II The weights (in kilograms) of the 27 packages of ground beef from Exercise 2.24 (see data set EX0224) are listed here in order from smallest to largest: a. Confirm...

Answered: 1 week ago

Question

★★★★★

In Problem 3- 27, Farm Grown, Inc. has reason to believe the probabilities may not be reliable due to changing conditions. If these probabilities are ignored, what decision would be made using the...

Answered: 1 week ago

Question

★★★★★

A cooperative is looking at diversifying a fraction of its corn to ethanol. It receives 150 billion bushels annually. The cooperative is considering the option to convert a portion of its corn to...

Answered: 1 week ago

Question

★★★★★

Patrick (72) contributed to an HSA before he retired and still has funds available. If he uses $2,000 of his HSA funds to pay for a vacation, what is the federal tax consequence

Answered: 1 week ago

Question

★★★★★

Ashels Engineering Works Inc. employs two types of labor: skilled workers considered to be direct workers and semi-skilled workers considered to be indirect workers. Skilled workers are paid $10 per...

Answered: 1 week ago

Question

★★★★★

This is one question Thanks a lot Suppose an economy begins at ADD and A80 in long-run equilibrium with real GDP equal to Y*; the price level is stable at P0. a. Suppose the central bank announces...

Answered: 1 week ago

Question

★★★★★

4. 16. A 5.0-kg block and a 4.0-kg block are connected by a 0.6 kg rod, as shown in the figure. The links between the blocks and the rod are denoted by A and B. A vertical upward force of magnitude F...

Answered: 1 week ago

Question

★★★★★

A small town in S. America had been plagued, thousands of people were dying of yellow fever. The task was to find the cause and eradicate it. Two approaches used were: Microscopic research on the...

Answered: 1 week ago

Question

★★★★★

A small publisher wants to keep data about its books and authors. What are possible business rules (must come from the real world)? Draw a conceptual ERD for the publisher.

Answered: 1 week ago

Previous Question Next Question