Why investor is usually better off if she holds diversified

Assignment Help Managerial Economics

Reference no: EM13921221

1. Explain why an investor is usually better off if she holds a diversified portfolio rather than investing all her resources in the stock of one company.

2. Discuss trade-offs between efficient risk bearing and incentives in compensation plans.

3. Some companies reward salespeople based on their performance relative to other salespeople in the company. Why would a company want to do this?

Reference no: EM13921221

Questions Cloud

Which house do you think will be in better condition : Two employees are assigned to work overseas for a two-year period. Which house do you think will be in better condition after the two years? Explain.

Analysis of the organizational problem of interest : Provide a rationale as to why you think this approach will help. This will require a practitioner analysis of the organizational problem of interest and an academic literature review of similar organizational problems and organizational developmen..

Developing a marketing strategy for a multinational company : This assignment consists of two (2) sections: Expected Commercial Value Forcast and Marketing Strategy Research Paper. You must submit both sections as separate files for the completion of this assignment.

Non callable bonds-what is their yield to maturity : Ezzell Enterprises' non callable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $105, and a par value of $1,000. What is their yield to maturity?

Why investor is usually better off if she holds diversified : Explain why an investor is usually better off if she holds a diversified portfolio rather than investing all her resources in the stock of one company.

Impact electric cars on three dimensions of sustainability : Research and write a short paper (maximum of two typed pages) on the impact of electric cars on three dimensions of sustainability.

Make a series of deposits into a interest bearing account : You plan to make a series of deposits into a interest bearing account earning 11%. You will deposit $2000 today, $3000 two years from today, and $9000 five years from today. If you withdraw $2000 four years from today and $5000 seven years from today..

What is their current yield : Garvin Enterprises' bonds currently sell for $1,050. They have a 7-year maturity, an annual coupon of $95, and a par value of $1,000. What is their current yield?

Individual independent variables significant : Develop a correlation matrix using MPG (miles per gallon), HP (horsepower), WT (weight). Is the correlation between the variables significant or not? Conduct a test for all correlations; that is for MPG v. HP; MPG v. WT; HP v. WT. Use a level o..

User Account

All Pages