Risk that affects a large number of assets, each to a greater or lesser degree, is called _________risk.

a. Idiosyncratic risk.
b. Diversifiable risk.
c. Systematic risk.
d. Asset-specific risk.
e. Total risk.

Answers

Answer 1

Answer:

c. Systematic risk.

Explanation:

Risk that affects a large number of assets, each to a greater or lesser degree, is called systematic risk.

This ultimately implies that, a systematic risk is practically impossible to predict, as well as to be avoided completely by business owners or companies. One of the most effective ways to mitigate a systematic risk is through the use of a correct asset allocation technique or through hedging but diversification of risks wouldn't reduce or mitigate a systematic risk.

Some examples of systematic risks includes changes to law, hike in interest rates, tax reforms, natural disasters such as flooding, earthquake, bushfire, bank failures, change of foreign policy etc.


Related Questions

Two years ago, you purchased 164 shares of IBM stock for $111 a share. Today, you sold your IBM stock for $139 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares and dividends you might have received as a shareholder. (a) What is the amount of profit you earned on each share of IBM stock

Answers

Answer:

a. $28

b. $4,592

Explanation:

Missing "(b) What is the total amount of profit for your IBM investment?"

a. The amount of profit per share = (End price-Beginning price)  = ($139 - $111) = $28.

Thus,  the amount of profit i earned on each share of IBM stock is $28

b.Total amount of profit = The amount of profit per share*Number of shares =($28 * 164) = $4,592

Thus, the total amount of profit for my IBM investment is $4,592

Inventory is classified on the balance sheet as a a.long-term asset b.current liability c.current asset d.long-term liability

Answers

Answer:

c.current asset

Explanation:

Inventory is classified on the balance sheet as a current asset

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,050 units. The budgeted production units for July are:

Answers

Answer: 4,375 units

Explanation:

The budgeted production for July will be;

= July sales + Ending inventory - Beginning inventory

Ending inventory = 25% * August sales =25% * 4,900 = 1,225

Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units

Which of these are important to consider when thinking about a possible future career?
I need help ASAP

Answers

Answer:

to me i think its "if the career interests me" because your not gonna want to do it if you dont like it

$459 into an investment at 5% for six years. What will the balance be at the end of six years?

Answers

Answer:

A=615.10

Explanation:

The balance after six years is the future value of 459 at a 5% interest rate.

The applicable formula is

A= P( 1+ r )^n

A = amount after six years

P= 459

r=5%

N=6 year

A= 459(1+5/100)^6

A = 459(1.05)^6

A=459 x 1.34

A=615.06

A=615.10

globalization in the modern world​

Answers

Answer:

We need to stop them they will ruin our world and the dystopian fears we have will become a reality.

Explanation:

What do you think about my meme?

I lost my debit card on my house but it’s the temporary and my real card is late so i need to call my bank but it ask for my card number what can I do

Answers

Answer:

Put your email!

Explanation:

Me answering a week ago:

What is the current yield of a bond with a 6% coupon, 4 years until maturity, and a price quote of 84

Answers

Answer:

7.14%

Explanation:

Calculation for the current yield of a bond

Current yield = (6%×$1,000) / (0.84 × $1,000)

Current yield = $60 / (0.84 × $1,000)

Current yield = $60 / $840

Current yield = 0.0714*100

Current yield =7.14%

Therefore the Current yield will be 7.14%

Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the next four years

Answers

Answer:

Present value = $9.7150 rounded off to $9.72

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3  +  D4 / (1+r)^4

Where,

r is the required rate of return

Present value = 3 / (1+0.14)  +  (3+0.25) / (1+0.14)^2  +  

(3+0.25+0.25) / (1+0.14)^3  +  (3+0.25+0.25+0.25) / (1+0.14)^4

Present value = $9.7150 rounded off to $9.72

Their upcoming four-year dividends' current value is $9.7150, rounded to $9.72, is the present value.

The calculation is as follows:

We determine the stock's current price using the dividend discount methodology. Based on the current value of anticipated future dividends from the shares, the stock is valued. We will use the following formula to get the present value of the following four dividends:

Present value is equal to D1 / (1+r), D2 / (1+r), D3, and D4 / (1+r).

Where,

The necessary rate of return is r.

Value in the present is equal to 3 / (1+0.14) + (3+0.25) / (1+0.14)2 +  

(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4

Rounding up to $9.72, the present value is $9.7150.

Learn more about dividends, from :

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#SPJ6

indicate your potential market​

Answers

Your potential market includes the demographic groups that are not currently your customers but could become customers in the future.

Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note

Answers

Answer:  Debit Accounts Receivable -Valley Spa  of $10,438 Credit interest revenue $238, Credit Notes receivable $10,200

Explanation:

Interest  Revenue =  Principal x Rate X time

$10,200 x 14% x 60/ 360 ( Using 360 days in a year)

$238

Journal to record dishonored note  for Tubman

Accounts titles and explanation           Debit         Credit

Accounts receivable                         $10, 438  

Interest revenue                                                                $238

Notes receivable                                                    $10,200

What rate of return is expected from a stock that sells for $30 per share, pays $1.54 annually in dividends, and is expected to sell for $32.80 per share in one year

Answers

Answer:

The Rate of return expected from the stock is 14.47%

Explanation:

Holding period return is the rate of return paid on the investment in the specific stocks in the form of dividend and appreciation in the value of the stock as well until the stock is held.

Firste we need to calculate the return on investment

Return on investment = Dividend Paid in the period + Appreciation in the value of stock

Placing values in the formula

Return on investment = $1.54 + ( $32.80 - $30 ) = $1.54 + $2.80 = $4.34

Now calculate the return rate as follow

Holding period return = ( Return on investment / Initial price of the stock ) x 100

Placing values in the formula

Holding period return = ( $4.34 / $30 ) x 100

Holding period return = 14.47%

The Midlands Company is eager to develop a project schedule. They have already completed the scope statement, work breakdown structure and schedule management plan. What is the next thing they should do in order to start creating a project schedule

Answers

Answer:

Define activities

Explanation:

When setting up a project there are various steps that are taken to ease project execution.

First the door statement is made to define what the project will cover, schedule management is made, activities are defined, activities are sequenced, and activities durations are estimated.

This process will ensure that no time is wasted in activities that are not productive and aimed at project completion.

Suppose that a house is worth $350,000 today. If house prices are expected to decline by 15% for each of the next two years. How much will the house be worth at the end of 2 years?

Answers

Answer: $‭252,875‬

Explanation:

This concerns a value in future (2 years) so the future value formula can be used;

= 350,000 * ( 1 - 15%) ²

= $‭252,875‬

House will be worth $‭252,875‬ at the end of 2 years if it declines in value at 15% per year.

The amount of company profits distributed to the shareholders at the end of a trading period is called?

a.

Shares

b.

Dividend

c.

Interest

d.

Commission

Answers

Answer:

Dividend

Explanation:

Dividend is the term used to describe the reward shareholder get funding a business. At the end of a financial period, a company has to prepare financial statements to determine its profitability. If the business was in profits, the shareholders, who are the business owners, are entitled to share in the profits. The portion of the profits that the shareholders get is the dividends.

Does the temporal difference learning of optimal utility values (U) require knowledge of the transition probability tables

Answers

Answer:

No

Explanation:

Temporal difference or some times written as TD learning process may be defined as an approach to learning that describes how to predict a given  quantity which depends on the future values for a given signal.

TD or temporal difference learning does not require the knowledge of transition probability tables. It only requires the knowledge of state and action plan. It also does not require the knowledge of reward function.

The agents does not need to acquire the transition model while using Temporal Difference Training. The transfer happens between regions, and the agent only changes the nations that are actually affected.

Only continuous action space information is required for Temporal Difference Learning.

Temporal-Difference does not require a model. Methods that use Temporal Differences learn directly through experience and contact with the environment.

Learn more:

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Using the information provided, analyze the affects of Lawry Lawn Service's transactions on the accounting equation.

May 1 Received $3,400 and issued common stock

May 3 Purchased a mower on account, $1,600

May 5 Performed lawn services for client on account $1,000

May 17 Paid $100 cash for gas used in mower.

May 28 Paid cash dividends of $700

Analyze the events chronologically, one transaction at a time. Beginning with the transaction on May 3rd, calculate the balance in each account after analyzing the effect of the transaction on the accounting equation.

Answers

Answer:

Lawry Lawn Service

Analysis of the effects of transactions on the accounting equation:

May 1:

Asset (Cash + $3,400) = Liabilities + Equity (Common Stock + $3,400)

May 3:

Asset (Cash $3,400 + Equipment $1,600) = Liabilities (Accounts Payable + $1,600) + Equity $3,400

May 5:

Asset (Cash $3,400 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $1,000

May 17:

Asset (Cash $3,400 - 100 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $1,000 -100

May 28:

Asset (Cash $3,300 - 700 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $900 - 700

Asset (Cash $2,600 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $200

Explanation:

The accounting equation reveals that each transaction that Lawry Lawn Service embarks on ensures that the two sides of the equation remain in balance.  This happens immediately the two entry principle is correctly applied and the transactions posted properly.  This is because every transaction affects two or more accounts, with one or two on one side and the others on the opposite side.  Every transaction giving rise to an asset must be funded either from debt or equity.

Lakonishok Equipment has an investment opportunity in Europe. The project costs €13 million and is expected to produce cash flows of €2.6 million in Year 1, €3.2 million in Year 2, and €3.7 million in Year 3. The current spot exchange rate is $1.41/€; and the current risk-free rate in the United States is 2.0 percent, compared to that in Europe of 2.7 percent. The appropriate discount rate for the project is estimated to be 14 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €8.6 million. Use the exact form of interest rate parity in calculating the expected spot rates.

Answers

This is kinda hard wow

Answer:

Explanation: (243,163.37)

PROJECT COST  € 13,000,000.00

YEAR 1 CF  € 2,600,000.00

YEAR 2 CF  € 3,200,000.00

YEAR 3 CF   € 3,700,000.00

SPOT RATE (EURO/DOLLAR) 1.4100

US RISK-FREE RATE 1.02 (1+2%/100)

EUROBOND RISK-FREE RATE 1.0270 (1+2.7%/100)

COST OF CAPITAL 14%

SALES PRICE IN 3 YEARS  € 8,600,000.00

USE INT RATE AND PURCHASING POWER PARITY

YEAR 1 1.400389484 (1.02/1.0270)*(1.41)

YEAR 2 1.390844473 (1.02/1.0270)^2 *(1.41)

YEAR 3 1.38136452 (1.02/1.0270)^3 *(1.41)

PROJECT COST IN DOLLARS   (18,330,000.00) (-13,000,000 * 1.41)

DOLLAR VALUE FO THE CF IN YEAR 1  € 3,641,012.66 (2,600,000 * 1.400389484)

DOLLAR VALUE FO THE CF IN YEAR 2  € 4,450,702.31  (3,200,000 * 1.390844473)

DOLLAR VALUE FO THE CF IN YEAR 3  € 16,990,783.60 (3,700,000 * 1.38136452)

NPV  (243,163.37) USING EXCEL (18,330,000)+NPV(RATE,CF1, CF2,CF3).

Variable costs for Coronado Industries are 30% of sales. Its selling price is $120 per unit. If Coronado sells one unit more than break-even units, how much will profit increase?a. $84 b. $36 c. $72 d. $400

Answers

Answer:

Income will increase by $84.

Explanation:

The break-even point is the number of units required to cover the fixed costs. Net income is zero.

First, we need to calculate the unitary variable cost:

Unitary variable cost= 120*0.3= $36

Now, the unitary contribution margin:

unitary contribution margin= 120 - 36

unitary contribution margin= $84

Income will increase by $84.

For most people, experiencing stress is
a normal
b. extraordinary
c. exciting
d. boring

Answers

A everyone gets stressed

Answer:

A. normal

Explanation:

Gear Corporation had the following common stock record during the current calendar year: Outstanding-January 1 104,000 Additional shares issued 3/31 5,040,000 Distributed a 10% stock dividend on 6/30 Shares reacquired 9/30 104,000 What is the number of shares to be used in computing basic EPS

Answers

Answer:

Gear Corporation

The number of shares to be used in computing basic EPS is:

6,654,400 shares

Explanation:

a) Data and Calculations:

January 1 Outstanding shares =              1,104,000

March 31  Issued shares                        5,040,000

Total outstanding before June              6,144,000

June 30 10% Stock Dividend                    614,400

Total before reacquisition in Sept.       6,758,400

Sept. 30 Treasury Stock                           104,000

Total outstanding for EPS computing 6,654,400

b) The outstanding number of shares on December 31 equals 6,654,400 shares.  This will be used to calculate Gear's EPS.  

What was the value proposition of Maggi in India which made it a success but not in Pakistan? What is the better value proposition in Pakistan?

Answers

The correct answer to this open question is the following.

The value proposition of Maggi in India which made it a success but not in Pakistan was that Maggie offered the modern Indian woman, the possibility to have quality noodles ready to cook in minutes. And this was very favorable for modern Indian women that had to work and other family responsibilities.

When Indian women realized how fast it was to cook the noodles, that they were tasty for kids and healthy, they immediately loved the product.

Unfortunately, that was not the case for Pakistan women. The "quickness" was not the best perceived as a good value proposition because in Pakistan, a more traditional approach to cook food -in a more crafty, elaborated way- is so much appreciated by the people of Pakistan. Different customs and traditions.

A better value proposition in Pakistan could have been a similar flavor that would appeal to the classic flavors of Pakistani cuisine.

Maggi was bought by multinational Swiss company Nestle in 1947, and it penetrated the Indian market in 1983. And the result was an instant success.

Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 Yield to Maturity 4.70% 5.20% 5.45% 5.65% 5.80% (a) What is the price per $100 face value of a 3-year, zero-coupon risk-free bo

Answers

Answer:

$85.28

Explanation:

Maturity (years)           1             2           3            4            5

Yield to Maturity     4.70%    5.20%    5.45%    5.65%    5.80%

the formula that we can use to calculate the market value of a zero coupon bond is:

market price = maturity value / (1 + yield to maturity)ⁿ

maturity value = $100yield to maturity = 5.45%n = 3 years

market price = $100 / (1 + 5.45%)³ = $100 / 1.172573 = $85.28

If a CobbDouglas production function has alpha​ = 0.34 and beta​ = 0.42, then a​ 1% increase in inputs results in a​ ________ change in output. A. ​0.76% B. ​0.8% C. ​0.76% D. ​8%

Answers

Answer:

0.76%

Explanation:

Firstly we write out the production function to be

Y = K^0.34L^0.42.

So if we have inputs that are increased by 1%, we will now have a new production function which is

Y = (K + 0.01 of K)^0.34 (L + 0.01 of L)^0.42

We write this in terms of growth rate

The Growth rate of Y = 0.34 x the growth rate of K + 0.42 x the growth rate of L

This gives us the Growth rate of Y = 0.34 x 1% + 0.42 x 1%

= 0.34+0.42

= 0.76%

Why are craftsman likely to produce fewer goods than modern manufacturers produce?
They do less intensive labor than manufacturing.
They are not organized into uniorhs
They are considered unskilled laborers.
They do more intensive labor than manufacturing
NEXT QUESTION
ASK FOR HELP

Answers

Answer:

They do more intensive labor than manufacturing.

Explanation:

Answer:

I see you copy and pasting from ignitia

Explanation:

Trade can make everybody better off because it a. increases cooperation among nations. b. allows people to specialize according to comparative advantage. c. requires some workers in an economy to be retrained. d. reduces competition among domestic companies.

Answers

Answer:

b. allows people to specialize according to comparative advantage.

Explanation:

A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).

Trade can make everybody better off because it allows people to specialize according to comparative advantage.

This ultimately implies that, trade creates an enabling environment that suits a specific service provider or producer of a particular product.

Partnership should be one of the 8 Ps, but it's not because it doesn't have enough of an effect on organizations.
O True
False

Answers

Answer:

I think true and thanks for point

The Lerner index in the paper industry is 0.58. Based on this information, a firm charging $3.25 per ream of paper should have a marginal cost of:

Answers

Answer:

Marginal cost = $1.365

Explanation:

The formula for calculating Learner Index is as follows:

Learner Index = (P - MC) / P  

0.58  = (3.25 - MC) / 3.25

3.25 - MC = 0.58*3.25

3.25 - MC = 1.885

MC = 3.25 - 1.885

MC = $1.365

Micker Boots produces cowboy boots, its Raw Materials Inventory account contains only direct materials. If the beginning balance in Raw Materials Inventory is $6300, the ending balance is $3300, and $55000 was the amount transferred to Work in Process Inventory, what is the amount of materials purchased during the period?

Answers

Answer:

Purchases= $52,000

Explanation:

Giving the following information:

Beginning inventory= $6,300

Ending balance= $3,300

Production= $55,000

To calculate the direct material purchase, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 55,000 + 3,300 - 6,300

Purchases= $52,000

What are the OSHA guidelines for reporting injuries, illnesses, and fatalities?

Answers

Answer:

(Answers may vary.)

I know that as per OSHA guidelines, I must report workplace related accidents. I would ensure I implement the following OSHA guidelines:

I will report any worker fatality within 8 hours.

I will report any amputation, loss of an eye, or hospitalization of a worker within 24 hours.

Since I have more than 10 employees, I will keep a record of any serious work-related injuries and illnesses for five years.

Explanation:

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