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satela [25.4K]
1 year ago
11

Ivan has plenty of money to invest but so far has bought high-risk securities. Explain how Ivan could diversify and whether it i

s necessary.
Business
1 answer:
Nookie1986 [14]1 year ago
3 0

Answer:

Its important to diversify because it can help an investor manage risk and reduce the volatility of an asset's price movements. If his high risk investment backfires hes left with almost nothing, diversifying can give him a safety blanket just incase. The many ways he can diversify include, but aren't limited to, Use asset allocation or target date funds, Invest in a mix of mutual funds or ETFs, Customize with individual stocks and bonds, Vary company size and type, Invest abroad, and add complexity.

Explanation:

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Dan saves a portion of his income in an interest-earning account. In the loanable funds market, Dan is b. John owns a pizzeria a
Ksju [112]

Answer:

Check the explanation

Explanation:

a) Dan is a "Supplier" of funds.

b) Jon is a demanded of funds.

c) Savers save more when the real interest rate is "increase" and the supply of the loanable fund slopes "upward".

d) Borrowers like JOn are likely to borrow more when the interest rate is "decreasing " adn therefore, the demand for loanable funds slope "Downward".

7 0
2 years ago
Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the fol
Andrei [34K]

Answer:

Almost every other business in this universe now relies upon group thinking rather than individual approach to anything.

It has several advantages, some of them are pointed out below:

o) Equality bias, when there are group discussion, this means that everyone has a part of say in the final decision and that leads to equality bias, which is beneficial.

o) More alternatives are generated, it is a fact that when an individual takes a decision, he/she is neglecting a lot of other options to explore which could be a lot beneficial for the business.

o) More acceptance of the final decision, Since the final decision taken is with the approval and consent of everyone, there is a possibility that the final decision will be more acceptable.

o) Lastly, It creates Synergy, synergy is the idea that a decision as a whole is better than in parts.

Hope this helps you. Good Luck.

3 0
1 year ago
On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received
motikmotik

Answer:

Explanation:

The journal entry is shown below:

1. Accounts receivable A/c Dr $160

        To Sales discounts forfeited $160

(Being sales discount  is recorded)

The computation of the sales discount is shown below:

= (Sales value - payment made) × discount rate

= ($40,000 - $24,000) × 1%

= $160

2. Cash A/c Dr $16,000

       To Accounts receivable A/c $16,000

(Being cash is received)

4 0
2 years ago
If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a A. comparative advantage B.
jek_recluse [69]

Answer: B : Trade deficit

If a land of Mercury had total exports of $150billion and total imports of $234billion, it had a "trade deficit".

Explanation:

Trade deficit can be termed an amount by which a country's costs of imports exceeds cost of exports. It is also known as negative balance of trade. Trade deficit is a term of trade that measures international trade.

Trade deficit is obtained by subtracting a country's export from its imports.

Mathematically :

Trade deficit = imports - exports

Trade deficit occurs when a country foreign debt is greater than what it produce for exports. Also when a country depends on another country for refinering their manufactured goods, such country will experience trade deficit.

It can be controlled by promoting constructions of refineries to process products, productions of raw materials for goods, improving exports and limiting imports.

3 0
2 years ago
A risk premium is a measure calculated to reflect the riskiness of future profits. Subtracted from the discount rate when calcul
kirill [66]

A risk premium is a measure calculated to reflect the riskiness of future profits. is The metric denotes the difference between the expected return on a market portfolio and the risk-free rate. The value of a firm is larger the lower is the risk premium used to compute the firm's value.

5 0
1 year ago
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