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satela [25.4K]
2 years 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]2 years 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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You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What i
MArishka [77]

Answer:

More than $1500 price per car per month has to be dropped.

Explanation:

Given:

price per car = $20,000

car sale per month = 40

rate of increase in demand = 3

Solution:

Revenue R = Price × Quantity = P * Q

From the above given data

P = 20,000

Q = 40

R = P*Q

dQ/dt = 3

We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.

R = P*Q

dR/dt = (dP/dt)Q + P(dQ/dt)  

          = (dP/dt) 40 + 20,000*3 < 0

          = (dP/dt) 40 < 60,000

         = dP/dt < 60000/40

         = dP/dt < 1,500

Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.

3 0
2 years ago
Read 2 more answers
You believe that you can earn 2% more on your portfolio if you engage in full-time stock research. However, the additional tradi
Korolek [52]

Answer:

the most spend on research will be $12,000

Explanation:

given data

earn =  2% more

trading costs = 0.5%

stock portfolio = $800,000

solution

we know that here net earnings due to research is expected is

net earnings due to research = 2% - 0.5 %  = 1.5 % of stock portfolio

so

spend on research is = 1.5 % of stock portfolio

spend on research is = $800,000  × 1.5%

spend on research is = $12,000

so here when we spend more than $12,000 it end up in a net loss

so the most spend on research will be $12,000

6 0
2 years ago
You determined the following information for Big Rapid's Supplies: It has a receivables turnover rate of 23.5 a payables turnove
wlad13 [49]

Answer:

35 days

Explanation:

Receivables turnover rate = 23.5

Payables turnover rate = 12.5

Inventory turnover rate = 19.15

Length of firm's operating cycle :

(Days sales in inventory + average collection period)

Days' sales in inventory = (365 days / inventory turnover ratio)

Days' sales in inventory = (365 / 19.15)

Days's sales in inventory = 18.717 days

Average collection period : (365 / accounts receivable turnover ratio)

Average collection period = (365 / 23.5)

Average collection period = 15.531

(18.717 + 15.531)

= 34.248

= 35 days

4 0
2 years ago
Which of the following is NOT a type of mistake in contract law?
faltersainse [42]
What are the possible answers
6 0
2 years ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
vodka [1.7K]

Available Options are:

A. Investors' allowable investment depends on the accredited or non-accredited status.

B. Investors may invest a combined $50 million within a 12-month period.

C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

Explanation:

The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

1. $2000

2. Or the lesser of (If the net worth of Wendy is less than $100,000)

  • 5% of its total income for the year
  • Net worth

There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

This means the non-accredited investor can not invest more than $1 million.

3 0
2 years ago
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