Which is most correct concerning investment risk

Assignment Help Financial Accounting
Reference no: EM132531282

Question 1: Which of the following is (are) most correct concerning investment risk

Select one:

Option a. All of the options are correct

Option b. Market risk systematically affects most stocks in the market so it is impossible to diversify away through adding more stock in the portfolio.

Option c. Risk reduction effects increase as more and more stocks are added to the portfolio because firm-specific risks comprise of most of the portfolio risk.

Option d. It is possible to form a completely riskless portfolio by adding a very large number of security to the portfolio

Option e. Random events as lawsuits, strikes, successful and unsuccessful marketing programs that affect individual firm / industry is example of market risk.

Reference no: EM132531282

Questions Cloud

What the correlation coefficient between the securities is : The maximum benefit of diversification can be achieved by combining securities in a portfolio where the correlation coefficient between the securities is
Dupont analysis-dearborn supplies : Dearborn Supplies has total sales of $201 ?million, assets of $109 ?million, a return on equity of 35 ?percent, and a net profit margin of 7.3 percent.
Where do you have opportunities to grow leadership skills : Leadership is the ability to influence others to achieve organizational goals. Organizations spend billions of dollars each year to improve the leadership.
Four factors that lead to capital budgeting decisions : Additionally, name and discuss the technique for measuring results for a capital budget that has been accepted as an investment.
Which is most correct concerning investment risk : Which most correct concerning investment risk? Random events as lawsuits, strikes, successful and unsuccessful marketing programs
Think about jp morgan you will be making recommendations : Think about JP Morgan you will be making recommendations for in As the CFO of the company, would you recommend the issuance of equities to raise capital?
What role does socialization practices play : Apply current and previous learnings in OB to support successful facilitation of groups within an organization. For your paper, you must identify and defend.
What is definition of recognition for asset and a liability : Comment whether the deferred tax asset and deferred tax liability meet the definition and recognition for an asset and a liability according to the Conceptual
Describe why outcomes were either positive or negative : At one time, the idea of an organization promoting from within was seen as all good with no downside. But is it true that this is really the best way for an.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd