What are pros and cons of diversification strategy?

Q: Explain the Risks of Global Investment?

A: The investment which is trending in American companies is a global investment. It forms a smaller…

Q: What is investment timing option?

A: Option with reference to investment or project refers a significant option that can affect the…

Q: What are the assumptions of efficient market hypothesis? Discuss.

A: The efficient market hypothesis (EMH) is a hypothesis theory which states that share prices reflect…

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: How does the Broader Diversification Reduce Risk?

A: Portfolio is a pool of different investments/assets. Investors can categorize the risks in two…

Q: What is the Joint Hypothesis and what are its implications for tests of asset pricing models?

A: The Capital Asset Pricing Model (CAPM) is a model that explains the relationship between expected…

Q: Can the Broader Diversification Increase Expected Return?

A: The concept of portfolio diversification is nothing but including unrelated assets in the…

Q: Which is the most efficient analysis method used to determine the project acceptability on an…

A: Present worth is a financial identicalness approach in which incomes of a venture are estimated at…

Q: explain diversification and buy and hold stratgeies

A: In the world of finance and investment diversification is an important concept and strategy that…

Q: Discuss how diversification reduces firm specific risk.

A: Diversification is investing money in many investments rather than a single investment. In…

Q: why does related diversification strategy and unrelated diversification strategy often fail

A: A business organization, entering into a new market where they do not have business with and create…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: How can we reduce investment risks by asset diversification?

A: Answer: Diversification is nothing but the strategy that reduces the risk by allocating assets to…

Q: Define diversification

A: DiversificationIt is a strategy for the management of risk. Allocating the resource in the different…

Q: Explain Diversification Benefits with example?

A: Following are the benefits of diversification: Reduce the risk of loss: Portfolio diversification…

Q: Explain the concept of diversification graphically?

A: The graph of the diversification concept is represented below:

Q: How Broader Diversification Increases Expected Return?

A: The expected return on an investment refers to the weighted average of estimated returns and…

Q: if diversification is desired, would you seek investments with high correlation?

A: The question is based on the concept of risk in investment and diversification effect. The risk…

Q: what are the sssumptions about market efficiency?

A: The theory that states that all the information available in the capital market is reflected in the…

Q: What is the potentially acceptable investment alternative?

A: An alternative investment is a financial asset that doesn't can be categorized as one of the…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Which are the benefits of diversification?

A: The question is based on the concept of diversification. Diversification is a technique to spread…

Q: How can diversification reduce risks? Give examples from the rea world

A: Diversification is the process of managing risk which mixes the individual investments in a…

Q: What is market multiple analysis?

A: Answer: Market multiple analysis: A multiple analysis of market is a form of financial modelling to…

Q: Which are the current risks to consider investing on a global basis?

A: Answer: Introduction: Usually, the concept of global investment risk incorporates several dissimilar…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: Does the Diversification require regular evaluating the assetsand realigning the investment mix?…

A: As an investor, the main objective of investment is to maximize return on investment. An investment…

Q: Explain Broader Diversification Reduces Risk?

A: The investment in different financial assets is known as the portfolio of an investor. The…

Q: How to minimize or eliminate risk using diversification or other means.

A: Diversification is a process investment in multiple assets with the available amount.

Q: what should a rebalancing strategy include from a naive diversification perspective?

A: Investors can use rebalancing to ensure that their portfolio remains aligned with their desired risk…

Q: What is the meaning of Resource Market?

A: In business terms, anything which acts as input and contributes to the production process refers to…

Q: Explain Global Diversification?

A: The question is based on the concept of diversification in global market. Diversification is a…

Q: Describe the risk and return profiles of various investment vehicles and the importance of…

A: Investment vehicles refers to the different category of financial assets that are being offered in…

Q: Illustrate how risk related to investment

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: Discuss how diversification can enhance risk reduction?

A: Introduction : Diversification can be understood as the act of distributing resources in such a…

Q: What is the portfolio investment concept?

A: Portfolio is a group of stock, shares and bonds owned by the investors. It is a combination of asset…

Q: What is hedging and how is it different from diversification? If a firm needs to manage its risk,…

A: A hedge is an investment that is made fully intent on diminishing the danger of unfriendly value…

Q: Provide recommendations for financial liberalization?

A: The financial liberalization refers to the liberalization of the capital account and the regulation…

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: Explain the term Market Timing strategies?

A: THE MARKETING TIMING STRATEGIES IS GIVEN BELOW-