Diversification reducing the risk of portfolio of assets

Assignment Help Finance Basics
Reference no: EM13827057

Problem:

Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.

Summary of question:

This question basically belongs to Finance as well as it discusses about diversification reducing the risk of portfolio of assets below the weighted average of risk of individual assets. This has been explained in the solution.

Total Word Count 272

Reference no: EM13827057

Questions Cloud

Estimated beta of stock of a company : The stock of Eastman Kodak has an estimated beta of 1.6. How would you interpret this beta value?  How would you evaluate the firm's systematic risk?
Why should organizations identify and use best practices : Why should organizations identify and use best practices?
What is the u.s. dollar-euro exchange rate : How many yen could one U.S. dollar buy tomorrow - Venture capital is most appropriate to be the source of funding for which one of the following - What is this amount called?
Entity had litigation pending at date of financial statement : If an entity had litigation pending at the date of the financial statements and auditors learn of the outcome of this litigation following the date of their report (but prior to the audit report release date), this is known as a(n)
Diversification reducing the risk of portfolio of assets : Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.
Write essay on sponge bob : Write a 2000 word essay on Sponge Bob (animation movie) Try to answer these questions in your essay. How they came up with the idea of this animated movie (spongebob)? How they made the movie
Determine the key factors contributing to the failure : Determine the key factors contributing to the failure in question. Next, analyze how the failure impacted both the organization's operations and patient information protection and privacy.Analyze the leadership team's reaction to the failure, and ind..
Companys predetermined overhead rate for the year : Logan Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 27,000 direct labor-hours would be required for the period's estimated level of production. Compute t..
Report on building sales team for selling : Report on Building Sales team for selling

Reviews

Write a Review

Finance Basics Questions & Answers

  How much has he accumulated

Juan Garza invested $35,000 10 years ago at 12 percent, compounded quarterly. How much has he accumulated?

  What an auto worker at general motors makes today?

In January 1914, Henry Ford startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. At the time, $5 was about double what the average auto worker made.

  Time value of money calculations are used to determine the

1. time value of money calculations are used to determine the value of potential retirement benefits. if a person

  Calculate how much more michael will need

To make up the shortfall, Michael will make monthly contributions to his investment account which earns 6% compounded annually. How much must he save each month to have enough to buy the house in 4 years' time?

  Calculation of firms growth rate and capital gains yield at

calculation of firms growth rate and capital gains yield at given dividend options1.nbspnbsp investors receive a total

  Determine the safest attainable portfolio

Suppose your eccentric Aunt Claudia has left you $50,000 in Alcan shares plus $50,000 cash. Unfortunately her will needs that the Alcan stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks.

  Question regarding the fixed-pricing contracting

Among the different forms of fixed-price contracting, determine the single most significant form that you believe would benefit the small-business owner the most. Explain your answer.

  Calculating partner share

Pearl invests $80,000 for a 10 percent partnership interest in an activity in which she is a material participant. The partnership reports losses of $500,000 in 2007 & $450,000 in 2008.

  Correlation coefficient between the two funds

The universe of available securities includes only two risky stock funds, X and Y, as well as T-bills. The data for the investment universe are shown in the table below. The correlation coefficient between the two funds is -0.3.

  What is the market value per share after the dividen

Verbal Communications, Inc., has 14,000 shares of stock outstanding with a par value of $1 per share and a market value of $32 per share. The firm just announced a 100 percent stock dividend. What is the market value per share after the dividen

  Calculate contribution margin per unit

If I sell a component for $20 each. Current capacity is 10,000 units per week. For the last few months, however, my company has been receiving new orders at a rate of 14,000 units per week, and now has a substantial backlog.

  Suppose the quick towing company purchases a new tow truck

suppose the quick towing company purchases a new tow truck. the old truck had a book value of 1000 and was sold for

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd