Some risk can be mitigated by diversifying

Assignment Help Financial Management

Reference no: EM131130664

We are learning that some risk can be mitigated by diversifying. In a portfolio of stocks, we simply buy stocks from lots of companies in different industries. What about poor Kelly. What can she do to avoid be crippled by some of the unsystematic risks that you have identified? How can she diversify? Be creative; I know she has a small business, but she faces the same issues that even the big companies face.

Reference no: EM131130664

Questions Cloud

An exponential distribution with parameter : The lifetime of a certain machine is a random variable having an exponential distribution with parameter λ. When the machine breaks down, there is a probability equal to p (respectively, 1 - p) that the failure is of type I (resp., II).

When would an investor receive margin call : Let’s consider an investor who contacts his or her broker on Friday, December 5, to buy three December gold futures contract on the COMEX division of NYME. Suppose the current future price is $1000 per ounce. Since the contract size is 100 ounces, th..

Which specific section of document most intriguing for you : Identify one passage in the U.S. Constitution that you think is the most important to ensure the proper functioning of American government. This question requires a specific passage to be cited, not a general principle of governing [e.g. "checks..

Consider a discrete-time markov chain : (b) Let N{t), for t > 0, be the number of renewals in the interval [0, t], where t is in seconds. If we suppose that every transition of the Markov chain takes one second, calculate

Some risk can be mitigated by diversifying : We are learning that some risk can be mitigated by diversifying. In a portfolio of stocks, we simply buy stocks from lots of companies in different industries. What about poor Kelly. What can she do to avoid be crippled by some of the unsystematic ri..

What is the dilemma that each organization is facing : What is the dilemma that each organization is facing? Explore whether bribery is right or wrong, and discuss using ethical relativism principles. Identify the cultural differences in bribery practices.

What is the difference between the accounting and finance : What is the difference between the accounting and finance definitions of operating cash flow? Under what circumstances are they the same?

What are the three parts of the health care iron triangle : What are the three parts of "the health care iron triangle"? What happens if you change any single part?

The terms provide for semiannual installment payments : Show how the total mortgage liability should be reported on the balance sheet at December 31, 2011.

User Account

All Pages