At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, variables that will equalize the central bank's target rate of inflation are both the current and expected rates of inflation.
This happens in the case of inflation targeting.
In inflation targeting the central bank forecasts the future path of inflation and compares the result with the target inflation rate ,target inflation rate is the the rate which the government believes is appropriate for the economy.
The difference between the forecast and the target explains how much monetary policy has to be adjusted for it. Some countries have chosen inflation targets with symmetrical ranges around a midpoint, while others have identified only a target rate or an upper limit to inflation.
Most countries do set their inflation targets in the very low single digits. A major advantage of inflation targeting is that inflation targeting combines elements of both “discretion” and “rules” in the given monetary policy.
To know more about inflation targeting here:
https://brainly.com/question/14301383
#SPJ4
When comparing alternatives with different cash flow amounts paid in different time periods, you should convert all of the amounts to their ____________ to make a better comparison
When comparing alternatives with different cash flow amounts paid in different time periods, you should convert all of the amounts to their present value to make a better comparison.
Amounts of money or streams of cash flows that are anticipated in the future are measured by their present value (PV), which expresses their value now. Since time itself impacts value, this value will be different from the nominal value of the cash flows. Time stands for separation from money, and separation breeds danger, which cancels out value.
The value of cash at some point in the future that is similar today is its present value. The ability for investors to compare values across time makes present value crucial. PV can assist investors in evaluating the potential financial gains from present assets or liabilities.
To know more about present value
brainly.com/question/14860893
#SPJ4
If autonomous spending increases by $500 billion and, as a result, equilibrium real gdp increases by $2 trillion, then we know that the?
If autonomous spending increases by $500 billion and, as a result, equilibrium real GDP increases by $2 trillion, then we know that the expenditure multiplier is 4.0.
What is the expenditure multiplier?The expenditure multiplier (also known as the spending multiplier) is a ratio that relates the entire change in a country's GDP produced by an autonomous change in aggregate spending to the amount of that change in spending. It calculates the impact of each dollar spent during an initial spending increase on a country's total real GDP.The impact of a change in revenue caused by a change in government spending is referred to as the government expenditure multiplier, denoted by kG. Thus, the government expenditure multiplier is the ratio of an increase in revenue (Y) to an increase in government spending (G).For example, if autonomous spending rises by $500 billion and equilibrium real GDP rises by $2 trillion as a result, we know that the expenditure multiplier is 4.0.Therefore, if autonomous spending increases by $500 billion and, as a result, equilibrium real GDP increases by $2 trillion, then we know that the expenditure multiplier is 4.0.
Know more about expenditure multiplier here:
https://brainly.com/question/15883095
#SPJ4
When developing cash flows for capital budgeting, it is easy to overlook important items.
a. True
b. False
When developing cash flows for capital budgeting, it is easy to overlook important items. The given statement is true.
The procedure a company uses to assess potential big projects or investments is called capital budgeting. Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new plant or a significant investment in a third party enterprise.
The decision-making process related to investing in long-term projects is referred to as capital budgeting. One example of this is the capital budgeting process carried out by an organization to determine whether to keep using the current machinery or purchase new machinery to replace the old machinery.
Learn more about capital budgeting here
https://brainly.com/question/7442083
#SPJ4
When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they?
When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they option(d)i.e, Give the firm a stronger financial foundation.
A general partnership, which is the fundamental type of partnership under common law, is, in the majority of nations, a grouping of people or an unincorporated business having the main characteristics listed below: Estoppel, proof of existence, and agreement are all necessary for creation.
A sole proprietorship is a type of business that is owned and operated by one person and in which there is no legal separation between the owner and the business entity. It is also referred to as a lone tradership, individual entrepreneurship, or proprietorship. A sole proprietor may hire staff members and does not always work alone.
In a sole proprietorship, the business's owner is personally liable for all debts and obligations. In a partnership, two or more individuals pool their resources for the company and split earnings and losses.
The complete question is:
When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they:
a) Are less risky because each partner is responsible for only a specified fraction of the firm's debts.
b) Are easier to terminate.To know more about refer to:
c) Cost less to organize.
d) Give the firm a stronger financial foundation.
To know more about general partnership refer to: https://brainly.com/question/17369246
#SPJ4
What is an arrangement in which the supplier maintains title to the inventory until it is used?.
Consignment inventory is an arrangement in which the supplier maintains title to the inventory until it is used.
What is Consignment Inventory?Consignment inventory is a supply chain model in which a product is sold by a retailer, but ownership is retained by the supplier until the product has been sold. Because the retailer does not actually buy the inventory until it has been sold, unsold products can be returned.
In other Term, Consignment inventory is a supply chain strategy or business agreement in which the consignor (i.e., wholesaler, supplier, manufacturer) gives the goods to a consignee (i.e., the retailer) to sell.
The consignor still owns the products and the consignee will only pay for them once they’ve been sold.
For instance, a retailer may strike up a consignment agreement with a fashion designer and agree to sell the designer’s clothes in-store. The retailer will only pay for the goods that are sold, and the rest will be returned to the designer.
Therefore, we can conclude that the correct option is B.
Your question is incomplete, but most probably your full question was:
What is an arrangement in which the supplier maintains title to the inventory until it is used?
A. postponement
B. consignment inventory
C. delayed transfer
D. supplier control
B. consignment inventory
Learn more about Consignment Inventory on:
brainly.com/question/13376533
#SPJ4
Training is a key element for an organization pursuing a commitment based hr strategy. True or false?.
True,Training is a key element for an organization pursuing a commitment based HR strategy. Training increases employee commitment, which results in increased retention for an organization. In the rapid model of instructional design, training design begins while needs assessment is still being conducted.
What is Training?Training is the teaching or development of any skills, knowledge, or fitness that relate to certain valuable competences in oneself or others. Training aims to improve one's capability, capacity, productivity, and performance.
A training module is an e-learning course component that focuses on a certain topic. Training modules, like books, serve as a "chapter" in the larger e-learning course. Consider the subject of sales training. You could want to go through how to create a successful email or the best sales strategies.
The training planning process is broken into four steps: Identify training needs and objectives; create a training strategy; create a course design; and create training materials.
To know more about Training follow the link:
https://brainly.com/question/25876830
#SPJ4
Using scheme, write a procedure called bigger that takes a list and a number as parameters and returns a list of all elements of the list that are larger than the number.
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC stick to the agreement OPEC will earn profits of $200 million and Mexico will earn profits of $100 million. If both Mexico and OPEC cheat then OPEC will earn $175 million and Mexico will earn $80 million. If only OPEC cheats, then OPEC earns $185 million and Mexico $60 million. If only Mexico cheats, then Mexico earns $110 million and OPEC $150 million.
OPEC Cheat Abide Cheat Mexico Abide a. Fill in the chart.
b. Does Mexico have a dominant strategy? If so, what is it?
c. Does OPEC have a dominant strategy? If so, what is it?
d. Is there a Nash equilibrium? If so, what is it?
e. Is this game an example of a prisoner’s dilemma? Why or why not?
Answer :gfgdfgdfgf dfgd gdfg dfg d hd
Explanation:
dfg dfg dfg dg dfg dh hd hdf fdhdfh h
Is there any way for a monopoly to operate more efficiently than a competitive market? why or how?.
The equilibrium point in a competitive market exists at the point of optimal market efficiency.
What is competitive market?A competitive market exists a term in economics that guides to a marketplace where there exist a large number of buyers and sellers and no single buyer or seller can influence the market. Competitive markets have no obstacles to entry, lots of buyers and sellers, and homogeneous products.
In economics, especially general equilibrium theory, A perfect market also understood as an atomistic market, is determined by several idealizing requirements, collectively anointed perfect competition or atomistic competition.
No, the monopoly can never be additional efficient than the perfectly competitive market because the competitive market exists at the point of optimal market efficiency and the monopoly will deliver at the point where the MR and the MC stand equal. here the market has the excess capability and a dead weight loss.
To learn more about competitive market refer to:
https://brainly.com/question/8753703
#SPJ4
During the classical period, composers broke away from being skilled servants and became what type of composers?
During the Classical period, composers broke away from being skilled servants and became celebrated artist of composers
Music of the Classical period developed from a search for a simpler, cleaner, more humanistic musical expression with universal qualities and appeal. The Classical Period also saw the formalization of many musical forms, such as the symphony and concerto
The composers of this time included more notations as to how their works were to be performed. While the era of the virtuoso was yet to come, the individual composer started the transition from servant to the Church or court to celebrated artist during the Classical Era.
Hence, the composers gained lot of exposure during the Classical period.
To learn more about Classical period here:
https://brainly.com/question/19144620
#SPJ4
Volunteering is an excellent way to find out whether you like a particlar job or type of work. what is another reason volunteeering can help with a job search?
Volunteering can give your resume that greater raise that makes you stand proud of the relaxation of the %.
It assists you to beef up the competencies you're already studying at work, broaden new capabilities and opportunities, and provides you with any other avenue to construct management abilities. All of those possibilities make you a more qualified and ideal candidate for your next process.
Right here are 11 motives why:
Volunteering seems extraordinary to your resumé ...Volunteering offers you enjoy. ...Volunteering lets you coach your paintings search capabilities. ...Volunteering teaches you to apply and interview for jobs. ...Volunteering enables you to coach and broaden your competencies. ...Volunteering expands your community.Volunteering provides many benefits to both intellectual and bodily fitness. Volunteering enables counteract the results of pressure, anger, and tension. The social touch factor of helping and running with others can have a profound impact on your general psychological properly-being.
Learn more about volunteering here: https://brainly.com/question/24452126
#SPJ4
The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called?
Producer surplus is the difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product.
A product is an object, system, or service offered for consumer use on demand. It is everything we can offer to the market to meet the wants and needs of our customers.
Goods are goods offered for sale. Products are services or items. It can be in physical or virtual or cyber form. All products are made at a price and sold at a price. The price charged varies by market, quality, marketing, and target segment.
Learn more about products here:https://brainly.com/question/25922327
#SPJ4
Do you think marketing intelligence tools and techniques has the potential to invade the privacy of private citizens? why or why not?
Market intelligence tools (also named marketing intelligence software) support businesses collect and aggregating required information about companies and people in their marketplace.
What is marketing intelligence tools?Market intelligence tools (also named marketing intelligence software) support businesses collect and aggregating required information about companies and people in their marketplace. This can include firm graphic information. financials and allocation rounds. competitive knowledge and analysis. Market intelligence allows you to become more customer-centric, gain a better understanding of market demands and consumer opinions, gather real-time relevant data, improve upselling chances, minimize risks, improve market share, and gain a competitive edge.
Technological innovation holds outpaced our privacy protections. As a result, our digital footprint can be tracked by the government and corporations in practices that were once unthinkable. This digital footprint lives constantly growing, including more and more data about the most intimate elements of our lives. As connectivity improves access to information, it also increases the possibility for agents to act established on the new sources of information. When these sources include personal information, risks of damage, inequality, discrimination, and loss of autonomy easily occur.
Anti-virus software exists becoming increasingly concentrated on online protection since this stands where most malware and attacks on privacy come from. Anti-virus tools like Bit defender can block unauthorized environment connections, warn you about suspect sites, and pick up any phishing exercise.
To learn more about marketing intelligence tools refer to:
https://brainly.com/question/14611936
#SPJ4
Crystal has just been approved for her first credit card. what should crystal do to help keep her debt under control?
Based on the fact that Crystal has been approved for a credit card, one thing she can do to keep her debt under control is to pay off the entire amount every month.
How can you avoid credit card debt?
Credit Card debt often increases when interest is added to the debt amount that a person owes.
If Crystal wants to avoid this interest, she can pay off the entire amount owed every month. With no interest charged, she can keep her debt under control.
Find out more on managing credit card debt at https://brainly.com/question/19522364
#SPJ1
Gerritt wants to buy a car that costs $26,750. the interest rate on his loan is 5.33 percent compounded monthly and the loan is for 7 years. what are his monthly payments?
382.24 are his monthly payments.
Present value of ordinary annuity = Payment * [1 - (1+ interest)- number of payments] / interest
26750 = Payment * [1 - (1+ 5.33%/12)- 7*12] / (5.33%/12)
26750 = Payment * [1 - (1+ 0.004442)- 84] / 0.004442
26750 = Payment * [1 - 1/(1.004442) 84] / 0.004442
26750 = Payment * [1 - 1/1.451071] / 0.004442
26750 = Payment * 0.310854 / 0.004442
26750 = Payment * 69.980639
26750 / 69.980639 = payment
$382.24 = payment
Monthly payments are the amounts paid each month to pay off the loan over the term of the loan. When you take out a loan, you have to repay not only the principal and the amount borrowed, but also accrued interest.
Learn more about Monthly payments at
https://brainly.com/question/2151013
#SPJ4
Under the sipde system, to be able to make estimates and predictions, what are the three rules you must remember?
Rules of the road, rules of the killer dynamics, rules of human; rules to be remembered under the SIPDE system, to be able to make estimates our predictions are rules of roads, dynamics, humans.
More about SIPDE :
The procedure is a simple method for addressing the driving challenge. It is an acronym for a 5 step process for defensive driving.
Search the road and any off-road areas 20 to 30 seconds in advance is what "S" stands for. "Identify" anything in the next 12 to 15 seconds that might get in the way of your intended course of travel. P is stated as predict what actions or alterations in the environment on or near the roadway might make the situation more dangerous D stands for "Decide," therefore decide what steps you should take to assist reduce hazards. "E" stand for "Execute" the decision you have made.
Learn more about the roads here:
https://brainly.com/question/12384327
#SPJ1
A common criticism of the marketing system is that intermediaries ________. are overly protective of manufacturers' interests provide only essential services undervalue their service costs are too few in number mark up prices beyond the value of their services
A common criticism of the marketing system is that intermediaries mark up prices beyond the value of their services.
A market system is any systematic process enabling many market gamers to provide and call for assisting consumers and sellers to engage and make offers. It isn't always simply the rate mechanism but the entire system of regulation, qualification, credentials, reputations, and clearing that surrounds that mechanism and makes it perform in a social context.
A few authors use the time period "market device" to consult particularly to the loose market device. This text focuses on the extra well-known feel of the term in step with which there is an expansion of various market structures.
One of the examples is Amway. It's an American marketing company that manufactures beauty, home care, and health products. The brand belongs to a corporate vertical marketing system because it sells products only through its authorized stores.
Learn more about the market system here: https://brainly.com/question/24804191
#SPJ1
When one decision is made, the next best alternative not chosen is called which term?
When one decision is made, the next best alternative not chosen is called Opportunity Cost.
The opportunity cost of a certain activity option is defined as the loss of value or benefit that would result from engaging in that activity (the cost) as opposed to engaging in an alternative activity that offers a higher return in value or benefit in microeconomic theory.
The comparative advantage increases as the opportunity cost decreases. For instance, renting a car is prohibited if you buy one and use it just for transportation, but buying a car is permitted. Simply said, it indicates that you trade one item for another.
Opportunity cost can be expressed in the following simple equation: "Opportunity Cost = (returns on best Forgone Option) - (returns on Chosen Option).
To learn more about Opportunity Cost here
https://brainly.com/question/24319061
#SPJ4
The way to increase the profitability of a firm is to create less-expensive products. True or false?.
False
Value creation is the key to increasing a company's profitability.
What is profitability?Profit is defined as the difference between an economic entity's revenue from outputs and its opportunity costs for inputs. It is equivalent to total revenue less total costs, which include both direct and indirect costs.
How do you explain profitability?A company's profitability is determined by comparing its revenue against its outgoing costs. A more efficient business will make more money relative to its costs than a less efficient one, which would have to spend more to make the same amount of money.
To know more about profitability visit:
https://brainly.com/question/18567571
#SPJ4
_____ is an operational requirement of a global information system (gis) that includes accounting and financial data, manufacturing updates, inventory, and so forth
Consolidated global reporting is an operational requirement of a global information system (gis) that includes accounting and financial data, manufacturing updates, inventory, and so forth.
Reporting is the presentation of news in newspapers, radio and television. ... honest and impartial political reporting. Synonyms: journalism, writing, announcement, news broadcast A financial statement of an economic entity that presents the assets, liabilities, net worth, income, expenses, and cash flows of a controlling company and its controlling company as a single economic entity.
According to International, consolidated financial statements are "group financial statements presenting the assets, liabilities, equity, income, expenses and cash flows of a parent company and its subsidiaries as those of a single economic entity." Accounting Standard No. 27 “Consolidated and Separate Financial Statements” and International Financial Reporting Standard No. 10 “Consolidated Financial Statements”.
Learn more about finances here: https://brainly.com/question/26499492
#SPJ1
S&L members do not have voting rights true or false
S&L members do not have voting rights is a false statement.
Who are Savings and loan association?A savings and loan association (S&L), or thrift institution, exists as a financial organization that specializes in accepting savings deposits and creating mortgages and other loans.
S&Ls place a stronger focus on residential mortgages, whereas commercial banks tend to focus on working with large companies and on unsecured credit services (such as credit cards). Commercial banks can be chartered at either the condition or federal level. The same stands true for S&Ls.
The terms "S&L" or "thrift" are primarily utilized in the United States; equivalent institutions in the United Kingdom, Ireland, and some Commonwealth countries contain building societies and trustee savings banks. They exist often mutually owned (often named mutual savings banks), indicating that the depositors and borrowers exist as members with voting rights, and can direct the financial and managerial purposes of the association like the members of a credit union or the policyholders of a mutual insurance company.
While it exists possible for an S&L to be a joint-stock company, and even publicly traded, in such instances, it exists no longer a mutual association, and depositors and borrowers no longer maintain membership rights and managerial authority. By law, thrifts can have no more than 20 percent of their lending in commercial loans—their emphasis on the mortgage and consumer loans creates them specifically vulnerable to housing downturns such as the deep one the U.S. experienced in 2007.
Hence, S&L members do not have voting rights is a false statement.
To learn more about Savings and loan association refer to:
https://brainly.com/question/12595025
#SPJ9
A special order should be accepted if incremental costs are ______ incremental revenue
Special orders should be accepted if incremental costs are Less than the incremental revenue.
Incremental sales are the profit that a company derives from increased sales. Can be used to determine the additional revenue generated by direct sales from a particular product, investment, or marketing campaign if sales volume increases. Incremental revenue is often compared to the cost of the product.
Incremental Sales is the profit a company makes from a constant increase in sales. The calculation is very easy. Multiply the number of units sold by the price of one unit. Incremental revenue refers to additional revenue earned by selling additional units, and incremental cost is the additional cost incurred by producing additional units of a product.
Learn more about Incremental revenue here: https://brainly.com/question/23798931
#SPJ4
What happened after the governor of pennsylvania ordered 8,000 national guard troops into homestead?
Frick reopened the mill using strike breakers for labour after the governor of Pennsylvania ordered 8,000 national guard troops into homestead.
What was homestead strike?
In July 1892, a dispute between Carnegie Steel and the Amalgamated Association of Iron and Steel Workers exploded into violence at a steel plant owned by Andrew Carnegie in Homestead, Pennsylvania.It was one of the deadliest labour-management conflicts in the nation’s history, some 12 people were killed when striking workers attacked 300 Pinkerton detectives hired by the plant’s management as security guards.With the union’s three-year contract with Carnegie coming to an end in June 1892, Frick announced pay cuts for hundreds of Homestead workers. After refusing to negotiate with the union, he shuttered the Homestead steel mill on June 29, locking 3,800 workers out. Only around 725 of those workers belonged to Amalgamated, but all of them voted to strike, surprising Frick, who had assumed only union members would strike.To learn more about homestead strike : https://brainly.com/question/13415129
#SPJ4
The ability to meet short-term obligations and to efficiently generate revenues is called:________.
The ability to meet short-term obligations and efficiently generate revenues is called Liquidity.
Liquidity is the ease or speed with which money can be raised to meet short-term financial responsibilities such as paying bills. Stocks and bonds, as well as other easily tradable assets, are regarded as liquid assets.
A company's liquidity can be determined by how well it can meet its short-term obligations, particularly those that are due in less than a year. What the business owes in comparison to what it owns is typically represented as a ratio or percentage. You can gain insight into the company's financial situation by using these metrics.
The liquidity status of a business is primarily affected by two factors. The first factor is its capacity to transform assets into cash to cover its present liabilities (short-term liquidity). Its debt-carrying capability is the second.
To learn more about Liquidity refer to:
https://brainly.com/question/13646882
#SPJ4
What is the term used for an agreement between the borrower and a permanent lender relative to future delivery of a takeout loan upon completion of construction?
Take out commitment is the term used for an is the term used for an agreement between the borrower and a permanent lender relative to future delivery of a takeout loan upon completion of construction.
A takeout mortgage is a method of financing agreement wherein a mortgage this is procured later is used to replace the preliminary mortgage. extra particularly, a takeout loan, or takeout financing, is lengthy-term financing that the lender guarantees to offer at a selected date or when particular criteria for final touch of a assignment are met.
A ahead takeout dedication is just a very highly-priced letter that promises to deliver a takeout mortgage inside the destiny if the property is constructed in line with plans and specifications and leased on the target condo price.
Take-out dedication is a written guaranty by means of a lender to provide everlasting financing to replace a short term loan at a unique future date if the mission has reached a certain level. A take-out commitment is quite commonplace in commercial real property improvement.
Learn more about agreement here:-https://brainly.com/question/1835508
#SPJ4
Creates a matrix of requirements with pass/fail criteria based on the organizations framework controls making sure to include:________.
When a matrix of requirements with pass/fail criteria based on the organizations framework controls is created, make sure to include five technical controls specified within your guiding framework.
When a matrix of requirements with pass/fail criteria is created, you have to make sure to include five technical controls specified within your guiding framework. Suppose your guiding framework does not have technical controls enumerated, you can use NIST special publication 800-53.
Also, by using your design or architecture, you can create test cases for each of the five technical controls which are appropriate for your design. Solid academic writing style is expected, APA style is not required.
Hence, make sure to include five technical controls specified within your guiding framework.
To learn more about technical controls here:
https://brainly.com/question/14782348
#SPJ4
An ability to efficiently allocate capital through an internal market may help the firm protect the competitive advantages it develops?
An ability to efficiently allocate capital through an internal market may help the firm protect the competitive advantages it develops through reduced disclosure to outside parties.
A company's ability to produce goods or services faster, more efficiently, or for less money than its competitors is known as a competitive edge. These elements enable the producing unit to outperform its competitors in terms of sales or margins.
For instance, a business is likely to have a competitive advantage if it advertises a product at a lower price than a similar product from a rival. The same holds true if a product is promoted that is more expensive but has special characteristics that people are ready to pay for.
Learn more about competitive advantage here
https://brainly.com/question/26356446
#SPJ4
Of the three core processes of business identified by bossidy and charan, which do they believe is the most important?
Of the three core processes of business identified by Bossidy and charan people are the most important.
No profitable method may be deliberate without contemplating the company's capability to execute it. The heart of execution lies in 3 core tactics: the human technique, the method system, and the operations process. Each enterprise and corporation uses these methods in a single form or different.
There are 3 specific forms of enterprise operations- service, merchandising, and manufacturing. For a commercial enterprise to feature properly and productively, entrepreneurs have to recognize which business operation aligns with their corporation and the duties it involves.
Core methods are the ones involved in the improvement and advent of the products or services, the advertising, and marketing, and transfer to the service beneficiary or customer, in addition to patron feedback or after-sale aid of the services or products.
Learn more about the processes of business here: https://brainly.com/question/24448358
#SPJ1
Compute the present value of a $100 investment made 6 months, 5 years, and 10 years from now at 4 percent interest. (lo1
$98.05 present value of invstment
What is present value?In economics and finance, present value, also known as present discounted value, is the monetary value of an expected revenue stream as of the valuation date.
The current value of a future sum of money discounted by a rate of return is known as its present value. It informs you how much you need to invest today to earn a certain amount in the future. The difference between the present value of cash inflows and cash outflows over time is referred to as net present value.
The present value of the costs is the amount of money that the costs are worth today. The present value of costs considers a notion known as the time worth of money.
To know more about present value follow the link:
https://brainly.com/question/15904086
#SPJ4
Diversification is commonly used to blank______.
a. increase risk
b. lower the sharpe ratio
c. lower risk
Diversification is commonly used to lower risk (option C).
What is diversification?Diversification is the process of investing in diverse asset classes so as to reduce non-systemic risks or idiosyncratic . Idiosyncratic risks are the risks that are specific a stock, company or industry. By diversifying a portfolio, non-systemic risks to do not dominate a portfolio, so the risk of the portfolio is reduced.
For example, if a person has a portfolio that is made up of only tech company stocks. If there is a downturn in the tech sector, it might mean a negative return for the portfolio owner. In order to diversify, the person might invest in the stocks of an healthcare company. Imagine that there is a negative report about tech stocks that leads to a crash, the value of of the portfolio would experience a large decline if the portfolio is made up of only tech stocks. The decline in the value would be less if the portfolio is made up of other stocks.
To learn more about diversification, please check: https://brainly.com/question/17681327
#SPJ1
