Goal of diversification is to eliminate all investment risk

Assignment Help Financial Management
Reference no: EM131894408

1. The beta of a diversified portfolio is equal to the geometric average of the betas of the individual securities that comprise the portfolio. (T/F)

2. An unexpected return is a return that results from a surprise announcement or event (T/F)

3. The goal of diversification is to eliminate all investment risk. (T/F)

Reference no: EM131894408

Questions Cloud

What have others done to quit or stop that behavior : Write what that is, describe how it is important to you, or how much you are attached to using.
General precepts of natural law of aquina : 1. Does America's politic landscape today fit the general precepts of natural law of Aquina's?
Give 2 arguments for moral relativism : Refute Moral Relativism. Give 2 arguments for Moral Relativism, refute those arguments, and present 3 arguments for Moral Absolutism.
Compare the experiences of the two employees : Ting works for an export company in China. Last year, Ting encountered a financial difficulty because her bank required her to have a large deposit in order.
Goal of diversification is to eliminate all investment risk : The goal of diversification is to eliminate all investment risk. An unexpected return is a return that results from a surprise announcement or event.
Explain the four truth tests : Explain the four truth tests and illustrate each with an example of a belief that would be true by its standards.
Aspect of utilitarianism objectionable : Many find this aspect of utilitarianism objectionable, and thus reject utilitarianism as a moral theory. For example, the philosopher David Oderberg
How companies get rid of the obsolete inventory items : From time-to-time, a logistician must dispose of obsolete items; however, the logistician should first get a budget for the disposal.
What is human nature for confucius : What is human nature for Confucius? What evidence does he give to show that his views about human nature are correct?

Reviews

Write a Review

Financial Management Questions & Answers

  Advantages of the irrevocable trust over revocable trust

Trusts can be treated as separate tax entities or as conduits through which income is passed to the beneficiaries. An irrevocable trust has certain advantages not provided by a revocable trust. Which of the following is (are) advantages of the irrevo..

  What is the american opportunity credit

Bill and Susan are married and file a joint income tax return. For 2014, their modified AGI is $70,000. Their daughter, Kelly, is in her third year at State University. They paid $4,300 for Kelly's tuition. What is the American Opportunity Credit tha..

  Calculate the amount of the firms gross profit

Calculate the amount of the firms gross profit.

  Marketing departments predict sales trends

There is a good living to be made out there by using regression and time series analyses to help marketing departments predict sales trends. Statistical tools like this are the only aspect of creating a sales forecast. If you leave it up to the compu..

  Recommend him to leave his current job for the new job

Your friend is seeking some advice from you. He is currently working for a firm that is paying him $70,000 per year with 1% increment per year. However, your friend has currently been approached by another firm for employment. That firm is willing to..

  What is the expected rate of inflation

If the nominal rate of interest is 13.68 % and the real rate of interest is 7.61%, what is the expected rate of inflation?

  Rate of return if state occurs

Rate of Return if State Occurs. Calculate the expected return for Stock A. Calculate the standard deviation for Stock B

  What was the cash flow to stockholders for the year

The 2013 balance sheet of Maria's Tennis Shop, Inc., showed $670,000 in the common stock account and $5.9 million in the additional paid-in surplus account. The 2014 balance sheet showed $705,000 and $6.8 million in the same two accounts, respectivel..

  What is the net income and operating cash flow

Amy's Gifts has sales of Sales of $2,300, Cost of Goods Sold of $600, Depreciation of $400 and Interest Expense of $100. If their tax rate is 35%, what is the net income and operating cash flow?

  What are the different investment alternatives

What are the different investment alternatives that may be used to invest the 25 million dollars

  Four-year project to improve its production efficiency

CSM Machine Shop is considering a four-year project to improve its production efficiency.

  What about the worst-case scenario

Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price 5 $ 1,400 per unit; variable costs 5 $ 220 per unit; fixed costs 5 $ 3.9 million; quantity 5 85,000 units. What values should the company use for the four ..

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