Explain the meaning of diversification

Assignment Help Financial Accounting
Reference no: EM131206473

What is the goal of investors putting together a portfolio of investments? Using the music store as you example, what types of music would you put together, if you were an individual's portfolio manager, to satisfy a "risk-taking" preference? Explain the meaning of diversification. 200 words or more

Reference no: EM131206473

Questions Cloud

Walter recognize as result of the current distribution : Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership is $16,000. What amount of gain must Walter recognize as a result of the current distribu..
Determine the appropriate cost of debt for a company : How do you determine the appropriate cost of debt for a company? Does it make a difference if the company’s debt is privately placed as opposed to being publicly traded?
Shilling uses the perpetual inventory system : On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will ..
What is expected return for a portfolio with an investment : Weighing the probabilities with returns or risk, help to indicate which asset will be creating the most influence in a mix of assets or a portfolio. Consider the following information: What is the expected return for a portfolio with an investment of..
Explain the meaning of diversification : What is the goal of investors putting together a portfolio of investments? Using the music store as you example, what types of music would you put together, if you were an individual's portfolio manager, to satisfy a "risk-taking" preference? Explain..
Reaction to announcements of massive layoffs : In recent years, it has been common for companies to experience significant stock price changes in reaction to announcements of massive layoffs. Critics charge that such events encourage companies to fire longtime employees and that Wall Street is ch..
Determine the margin of safety : What dollar amount of sales would be necessary to achieve a profit of $150,000? how many units would be necessary to achieve the $150,000 profit? using the $150,000 profit, calculate/determine the margin of safety.
What are the relevant costs for the make alternative : The XYZ Company has offered to supply 11,800 units of S10 per year for $27.00 per unit. If CJP accepts the offer, $13.00 per unit of the fixed overhead would be saved. In addition, some of CJP's facilities could be rented to a third party for $24,000..
What is estimated raw materials inventory balance at the end : Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: What is the estimated raw materials inventory balance at the end of July? What is the total estim..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Examine the basis for the comments you have identified

If Danle's Form 10-K for the year ended December 31, 2010, were to be reviewed by the SEC's Division of Corporate Finance, what comments may Danle expect to receive regarding its disclosure in that period? Examine  the basis for the comments you h..

  Review whole foods market

Summarize the company s financial performance for 2010. Do you think they satisfied stockholder expectations

  Passive loss deduction and passive loss suspended

Freda acquired a passive activity this year for $870,000. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were $122,000. Regular income tax depreciation of $49,750 was computed under MACRS. A..

  You are given information about doha company which is a

you are given information about doha company which is a service company located in qatar. you are expected to analyze

  Evaluate the value of units completed and transferred out

Evaluate the value of units completed and transferred out, ending work-in-process inventory, and the loss due to abnormal spoilage for the Assembly department.

  Uses the straight-line method of amortization

Garland Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31. Garland uses the straight-line method of amortization. What i..

  What authoritative literature addresses comprehensive income

What authoritative literature addresses comprehensive income? What is the predecessorstandard for the topic you selected and provide the definition of comprehensive income.

  Prepare a schedule analyzing the changes

Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2014.

  Exclusions from income between individuals and corporations

Compare and contrast the different deductions and exclusions from income between individuals and corporations. Describe at least two (2) tax benefits that are available to corporations that are not available to individuals. Discuss the reasons why th..

  How to read and understand statement of financial position

Explain to a non-accountant how to read and understand the statement of financial position (balance sheet) and income statement (profit and loss account) you have prepared.

  What is the amount of liability for advances from customers

YumYum has a service contract with a maintenance company. The contract is for cleaning services at a rate of $3,000 per month. The maintenance company bills YumYum semiannually on October 1 and April 1. The contract commenced on October 1, 2015. What..

  Prepare the journal entries to record the sale of the bonds

Prepare the journal entries to record the sale of the bonds on September 1 and the first semiannual interest payment on November 1, 2014.

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