The benefit of diversification when constructing a portfolio is that it can reduce what?

Q: Find out change in stock if closing stock is $60,000 and opening stock is $34,000?

A: According to question we are given  closing stocks =$60,000 Opening stock=$34,000 we have to…

Q: Discuss the uses of Mutual Funds. a) Diversification of Investments

A: Diversification refers to putting together a portfolio of shares from various asset groups. It…

Q: Explain why pre-payment risk is more likely when a mortgage is young than when the mortgage is…

A: Prepayment risk refers to the risk for the companies or the banks, if the loan takers repay the loan…

Q: How can we Include Risk in Investment Evaluation?

A: Risk is included in the investment evaluation  by using the following  methods like Beta, Standard…

Q: At what point in one’s life is it safest to try a risky investment? Closer to or further from…

A: From the investment point of view, the life of an individual can be divided into four phases -…

Q: 24 - As the number of securities in a portfolio is increased, what happens to the average portfolio…

A: Standard deviation is the measure of risk in the portfolio while mean measures the rate of return in…

Q: What is the difference between shares of stocks from mutual funds?

A: A stock in a market is called equity and it is described as security that depicts the possession of…

Q: What is risk financial management ?

A: In finance, risk management is both quantitative and qualitative.

Q: Is common stocks or bonds best for a high risk firm? Why?

A: Stock: When corporates trades in equity securities, Stock market is the place where the investors…

Q: How does risk sharing benefit both financial intermediaries and private investors?

A: Risk-sharing - risk sharing is a method of sharing risk between the participants.

Q: f investin

A: Answer why! because, Investing in crypto assets is risky but conjointly doubtless very profitable.…

Q: How does diversification benefit against risk in your portfolio?

A:

Q: 02.04 What is Stock Anyway? Investing basics chart

A: Stock refers to the share of an individual in the total investment in a company. It is also known as…

Q: what is undervalued and overvalued shares? Explain why investor buy undervalued shares and sell over…

A: An investor may take up various investment decisions in order to generate income. This is because…

Q: At what point in one’s life is it safest to try a risky investment?  Closer to or further from…

A: Its safest to try risky investment when you are further from retirement.

Q: Who manages all fund transactions in the firm?

A: The controlling and handling of a financial institution’s cash flow is called funds management.

Q: What is shares of stocks?

A: A capital market is a marketplace where investors and sellers exchange financial instruments such as…

Q: Given two portfolios, one portfolio has a higher sharpe ratio than the other. Explain what this…

A: A portfolio with higher sharpe ratio is considered superior than the portfolio with lower sharpe…

Q: How can the Philippine Stock Exchange entice an average Filipino citizen to invest in securities?…

A: Savings and investments are important in the economy. For the economy to function smoothly, there is…

Q: What is an investment pool?

A: Investment pools are the funds collected from individual investors or public entities. These funds…

Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…

A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…

Q: Why do most investors hold diversified portfolios?

A: "Don't put all your eggs in one basket" This adage very well captures all the essence of…

Q: Distinguish between Simple investments and Nonsimple Investments?

A: The investments are an important factor for the growth of the economy which cannot grow without the…

Q: Assume that you are a wealthy investor, which one do you prefer mutual funds or hedge funds? Why?

A: Mutual fund and multifaceted investments are overseen portfolios worked from pooled assets fully…

Q: There’s no penalty for withdrawing funds from investments before they mature. True or false

A: When a depositor withdraws funds or closes out a time deposit before the maturity date, an early…

Q: Explain what is meant by ESG and the advantages and disadvantages of using ESG considerations when…

A: ESG stands for Environmental, Social, and Governance factors that are increasingly used by investors…

Q: What causes the yield on a discount bond to exceed the coupon rate on a bond?

A: The markets are the place where the buyers of the goods, services, and products tend to meet and…

Q: hat is covariance, and why is it important in portfolio theory

A: Covariance is used in finance to measure the two variable's degree of movement together relative to…

Q: What are the requirements that a company must have, in order to insert in Borsa Italiana stock…

A: Companies of all sizes can use the Borsa Italiana stock exchange to generate considerable funds to…

Q: What is Interest Rate Risk and what is difference between Cash Flow Risk and Interest Rate Risk?

A: Interest rate refers to the amount of money that a lender will receive as an income or returns on…

Q: One of the goals of mutual funds is to achieve superior diversification compared to what individual…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: (d) If the risk-free rate is higher, what would you expect the optimal risky portfolio to differ…

A: Introduction: The possible return on a risk-free investment is known as the risk-free rate of…

Q: What will happen if two assets are earning the same expected return, but one is more risky than the…

A: There is a positive correlation between risk and return (a connection in which both variables move…

Q: How much liability does stockholder assume?

A: Shareholder: Any person, company, or organization holding stock in a specific company.

Q: discuss efficient portfolios and what information they can provide

A: A portfolio is defined as a grouping of financial investments such as bonds, stocks, cash,…

Q: As an investor, how do you diversify against risk?

A: Diversification means allocating funds to various financial instruments that have different risk…

Q: What is the difference between detachable stock warrants and convertible bonds?

A: A bond is essentially an advance taken out by an organization. Rather than going to a bank, the…

Q: Which factors affect the yield to maturity (or return on investment?

A: Yield to Maturity provides a benchmark for evaluation of different types of investment instruments.

Q: 1. In terms of the Markowitz portfolio model, explain how an investor identifies his / her optimal…

A: MARKOWITZ'S MODERN PORTFOLIO THEORY   In 1952, Harry Markowitz presented an essay on "Modern…