Diversification refers to the process

Assignment Help Financial Management

Reference no: EM13943325

Diversification refers to the process of:

using the correlation between securities to increase risk and hence expected return.

reducing risk by holding only U.S. Government bonds.

reducing risk by investing in securities that are not perfectly positively correlated.

increasing expected return by investing in more than one security.

Reference no: EM13943325

Questions Cloud

Risk management and malicious attacks : With regards to risk-response planning, there are four (4) responses to negative risks that an organization may pursue: avoid, transfer, mitigate, and accept. Develop an original and unique scenario to describe and contrast each of these responses..

What role phyllis attitude plays on her condition : The value of social support in general and as it applies to this case, How Phyllis might learn to thrive more fully in her current situation, along with evidence-based recommendations for intervention and What role Phyllis's attitude plays on her co..

How does nace define the modern corporation : How does Nace define the modern corporation and how is it different from the ‘classical' form? What are the ‘essential characteristics' of the corporation, according to Glasbeek?

Changing needs of the market : Carry out a written critique of the way in which characteristics of the chosen innovative product or service has altered over time in order to suit the changing needs of the market by taking account of the following:

Diversification refers to the process : Diversification refers to the process of:

Highest earning per share of ordinary share capital : Business is going well for David Johns Inc., the company that operates remote parking lots near major airports. The board of directors of this family-owned company believes that David Johns Inc. could earn an additional $1.5 million income before int..

Impact role of communication in a business : This part of the assignment, you will be required to substantiate your claim above (importance/impact role of communication in a business), with references to similar cases available from journals and other academic sources as well as the white pa..

The bond makes annual coupon payments : The Johnson National Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 4 years to maturity and is selling in the market for $917. The bond makes annual coupon payments. What is the duration of the bond? A) 5.5..

What does a swot analysis of netflix reveal : What does a SWOT analysis of Netflix reveal about the overall attractiveness of its situation?

User Account

All Pages