64) Tom "Tom Terrific" Seaver is looking to eliminate unsystematic risk in his portfolio which comprises 2 mm shares of Tesla. What is the best way he can go about doing that? a) Buy more of the same security b) Diversify with shares of other automobile companies c) Diversify with shares in multiple industries d) Buy puts on the shares of Tesla e) Call his professor
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- You are concerned about one of the assets in your diversified portfolio. You just have an uneasy feeling about the CFO of that particular firm. You do believe however that the firm makes a good product and that it is appropriately priced by the market. Should you be concerned about the effect on your portfolio if the CFO embezzles a portion of the firm's cash? Discuss based on diversification of assets in a portfolio. Further assume your friend is trying to decide to purchase stock from that same company. She does not hold a diversified portfolio like you do. Based on the relationship between risk and return, will you be willing to pay a higher price for the stock than her? ExplainYou are conerned about one of the assets in your fully diversified portfolio. You just have an uneasy feeling about the CFO, Ian Malcolm, of that particular firm. You do believe, however that the firm makes good product and that it is appropriately priced by the market. Should you be concerned about the effect on your portfolio if Malcolm embezzles a portion of the firm's cash? Discuss on diversification of assets in a portfolio. Further assume your friend Jane is trying to decide to purchase stock from that same company. Jane doesn't hold a diversified portfolio like you do. Based on the relationshio between risk and return, will you be willing to pay a higher price for the stock than Jane? ExplainTop-down research is being attempted by a street analyst. He intends to eliminate the stock with the lowest market share in its industry from his investment portfolio in order to realign it. Currently, he is considering the following stocks: Stock Name: ABCRevenue: 2,345,678.00Industry Sales: 27,000,579.88 Stock Name: DEFRevenue: 278,000.00Industry Sales: 2,897,000.90 Stock Name: GHIRevenue: 1,334,567.00Industry Sales: 8,700,899.76 Stock Name: JKLRevenue: 4,400,990.00Industry Sales: 6,678,999.00 Stock Name: MNORevenue: 13,000,000.00Industry Sales: 87,994,678.00 What stock is he going to get rid of?
- A friend of yours owns a company that is about to get a large government contract. He tells you this inside information about the contract and also mentions that it should make the company's stock price increase dramatically. If you invest based on this inside information, then you are implicitly saying that stock markets are inefficient in which context? Question 5 options: weak form efficient market theory semi-strong form efficient market theory strong form efficient market theoryou are concerned about one of the assets in your fully diversified portfolio. You just have an uneasy feeling about the CFO, Ian Malcolm, of that particular firm. You do believe, however that the firm makes a good product and that it is appropriately priced by the market. Should you be concerned about the effect on your portfolio if Malcolm embezzles a portion of the firm’s cash? Discuss in light of your readings on diversification of assets in a portfolio. Further assume your friend Jane is trying to decide to purchase stock from that same company. Jane doesn’t hold a diversified portfolio like you do. Based on the relationship between risk and return, will you be willing to pay a higher price for the stock than Jane? Explain.which of the following statement(s) is/are correct?( Please help me with explanations also) A) Some IPOs are cash offers and others are right issues b) Green show option gives the issuer to sell 10% more shares to the underwriter at the offering price C)crown related firms are perhaps the largest source of all venture capital D) all the options E) none the options
- Stephen's friend Jane is trying to decide if she should purchase stock from a company that makes a good product that is appropriately priced by the market. Stephen has a diversified portfolio however Jane does not. Based on the relationship between risk and return should Stephen be willing to pay a higher price for the stock than Jane? ExplainAssume that Mr James wants to invest his savings in less risky financial instruments with a minimum rate of return per annum . Therefore he invested his savings in some financial assets in which returns will be guarantee even if the company will be in losses also . The financial instruments purchased by Mr James is known as : a . Debentures b . Equity shares Oc . Preference shares d . Partnership sharesYour broker Luke works for a major bank that is working on the merger between ABC Inc. and XYZ Corp. The news is going to be released to the public next week. If you decide to buy some stocks now and split the profits with Luke, your actions should be categorized as ______. Question 27 options: A) It is not possible to tell from the information given B) ethical but illegal C) unethical but legal D) unethical and illegal E) ethical and legal
- Assume that Mr James wants to invest his savings in less risky financial instruments with minimum rate of return per annum. Therefore he invested his savings in some financial assets in which returns will be guarantee even if the company will be in losses also. The financial instruments purchased by Mr James is known as: O a. Preference shares b. Equity shares c. Partnership shares d. Debentures(please correct and incorrect option explain and correct answer) Which of the following statements is most correct? Group of answer choices Money market transactions include common stock transactions. Preferred stockholders are paid before bondholders but after common stockholders. One of the problems in corporations is that managers often put their own interests ahead of those of the stockholders. U.S. T-bills are considered risky securities. None of the above statements is correct.Sara is currently holding 75 shares of Apple, Inc. (AAPL), 16 shares of PayPal (PYPL), and 62 shares of DraftKings Inc. (DKNG) in her secret portfolio. To purchase fancy Christmas gifts, she is planning to short the 70 shares of AAPL and 16 shares of PYPL. As a result of this action, Sara’s portfolio would A. reduce the free cash flows. B. increase the volatility of returns. C. reduce the probability of high returns. D. increase the expected rate of return. Clear my choice