Why is diversification is a protection against ignorance

Assignment Help Finance Basics
Reference no: EM133123707

Warren Buffett (Trades, Portfolio) has famously said he is against diversification why he said that, and why is Diversification is a protection against ignorance?

Reference no: EM133123707

Questions Cloud

Ethical and legal issues related to electronic commerce : Discuss the ethical and legal issues related to electronic commerce and provide examples.
What is the firm wacc and total corporate value : If it increases leverage, rs will be 16%. If it decreases leverage, rs will be 13%. What is the firm's WACC and total corporate value
What is the annual inflation rate : What is the annual inflation rate? Provide your answer expressed in percentages and rounded to to the closes integer -- e.g., 12% or 34%.
Identify the potential positive and negative effects : Your company has chosen to implement new application for general use by health care providers.Identify potential positive and negative effects to your solution.
Why is diversification is a protection against ignorance : Warren Buffett (Trades, Portfolio) has famously said he is against diversification why he said that, and why is Diversification is a protection against ignoranc
What level of pretax cost savings do we require : A proposed cost-saving device has an installed cost of $695,000. The device will be used in a five-year project but is classified as three-year MACRS property f
What would be your total real return on the investment : If the inflation rate was 4.4 percent over the past year, what would be your total real return on the investment
Considering purchasing stock : If you were an investor considering purchasing stock in either Nike or Under Armour, which company would you choose?
What is the value of a share of stock : PQR stock has a sustainable growth rate of 3.58 percent, ROE of 13 percent, and dividends per share of $2.35. If the P/E ratio, based on trailing earnings, is 2

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price of the stock

A company decides it will boost dividends by 4% per year and five years ago, it paid a dividend in the amount of $1.45. At a return rate of twelve percent, what

  Determining the dividend payout ratio

If Colgate's equity  cost of capital is 9.4% per year and its dividend payout ratio remains constant, what price does the dividend discount model predict Colgate should sell for?

  How much is each end of the year payment

A woman borrows sixty-five thousand dollars and will repay the loan in equal annual payments over the next 10 years. The interest rate on the loan is 9%. How much is each end of the year payment?

  What rate of return company make over a 10-year study period

If the average buyout package is $100,000 and the company is able to reduce costs by $20 million per year, what rate of return will the company make over a 10-year study period? Assume all the company's expenditures occur at time 0 and the savings..

  Real progress and progress traps

What is the difference between ' real progress ' and 'progress traps' according to Wright? Why does he refer to civilization as a 'pyramid scheme'?

  Estimate the number of common shares outstanding

Why is there a distinction among income from continuing operations, income from discontinued operations, and income from extraordinary items?

  Cost of common equity using the capm

Hetterbrand's CFO has asked his financial analyst to estimate the firm's cost of common equity using the CAPM as a way of validating the earlier calculations.

  What is the level of aggregate resources for headstrong

What is the level of aggregate resources for Headstrong at this point?

  How much will you have to pay into the accounts

You expect that your daughter will go to college ten years from now. Taking account of inflation, you estimate that you will need $160,000.

  Calculate the profitability index

Your company is considering investing in a project that will cost $19,500,000 and will pay back to you $6,500,000 for the next 4 years.

  What is the expected return on the portfolio

You own a portfolio that has $3,000 invested in Stock A and $4,000 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent.

  Discuss the possible alternatives for loading and hauling

Discuss the possible alternatives for loading and hauling that the contractor may consider for the project.

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