Ask question

Ask question

All categories

katen-ka-za [31]

2 years ago

8

The risk that can be diversified away in a portfolio is referred to as ___________. I) diversifiable risk II) unique risk III) s

ystematic risk IV) firm-specific risk A. I, III, and IV B. II, III, and IV C. III and IV D. I, II, and IV E. I, II, III, and IV

1 answer:

VMariaS [17]2 years ago

3 0

Answer:

Option D. I, II, and IV

Explanation:

You might be interested in

Marcie started a consulting firm, she is using an office building she used to rent for $60,000/year as her office. She purchased

ValentinkaMS [17]

Answer:

Working for the firm is the best option for Marcie.

Explanation:

Option 1

The implicit value of Marcie is the benefits lost due to his working for a firm.

The implicit cost includes $60,000 of rentals lost, purchase of equipment for $25,000, expenditure of $20,000 on marketing, assistant salary of $30,000 per year and other expenses of $15,000. The revenue that the firm generate is $150,000.

The net benefit = Revenue - Implicit cost

The net benefit = $150,000 - ($60,000 + $25,000 + $20,000 + $30,000 + $15000) = Zero

Option 2

The other option is working for a firm which generates $100,000 in value.

This means the best option here for Marcie is option 2.

6 0

2 years ago

Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. She plans to send them to her sister's firm in Thai

Mkey [24]

Answer:

The correct answer is the option E: higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.

Explanation:

On the one hand, if Lori is <em>risk averse</em> then that means that she tends to prefer the less risk that can be in the moment of making a decision without given importance to what she can make of that decision.

On the other hand, the <em>expected utility</em> hypothesis states that Lori will choose the option that will have a greater utility according to the situations.

In conclussion, Lori will choose to send the jewelry to Thailand in separate boxes because she is risk averse and she will prefer to expend more money and lower the risks and by doing that she will have a higher expected utility.

3 0

2 years ago

At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor

Pie

Answer:

amount of the net source $15

Explanation: $Working\ capital= Current\ assets-Current\ liabilities$

$source\ of\ cash =[Cash+AR+Inventory]- [Amount\ Payable]$

cash = $183

received amount = $392

inventory =$714

payable amounts =$463

current assest = (183+392+714)-463=$826

current liabilities =(167+682+409-447)=$811

cash = $167

received amount = $409

inventory =$682

payable amounts =$447

current liabilities =(167+682+409-447)=$811

Hence since current liabilities is more than current assests, therefore there will be loss of accounts

Hence source of cash= (826-811) = $15.

7 0

2 years ago

Which of the following correctly describes a repurchase agreement? The sale of a security with a commitment to repurchase the sa

Morgarella [4.7K]

Answer:

The correct answer is A: The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price

Explanation:

A repurchase agreement (Repo) is a short term agreement between two parties in which one party sells the other party security (usually government securities) a<u>t a price with an agreement to repurchase the exact same security at a fixed time and price.</u> The maturity for a repurchase agreement can be from overnight to a year. The

Repurchase agreements are generally considered safe investments because the security in question functions as collateral, which is why most agreements involve U.S. Treasury bonds. The transaction allows the dealer to raise short term capital. It is a short term money market instrument in which two parties agree to buy or sell a security at a future date.

3 0

2 years ago

MLS Construction LLC asked MD Drilling and Blasting Inc. to do rock drilling and blasting work required for an excavation projec

ozzi

Answer:

Yes of course,the statement is true as the cheque that Mr. MLS gave him was not accepted in written format and when the written agreement was faxed , then also it was not signed by the required authorities. thus there is no authentication that it was agreed upon or not.

3 0

2 years ago

Read 2 more answers