Question

Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial institution makes diversification easier?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Business Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Explain how (if at all) each of the following events affects the location of a country’sproduction p...

A: As per the honor code, we are allowed to attempt only first three sub-parts of the question. If you ...

Q: The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilianpopulation in Austra...

A:  Australia’s total labor force = 13.5 million + 0.7 million                                         ...

Q: A discussion about psychological law of consumption?

A: According to the psychological law of consumption "Increase in income increases consumption but not ...

Q: In terms of our shift variables of demand and supply, how are each of the following pairs related? W...

A: a. Wheat and bread: Here, wheat is the main input for bread production. When wheat price increases, ...

Q: Q#9

A: The price at which or below which a consumer will definitely purchase one unit of a commodity is kno...

Q: Which type of cost does depend on a firm's output? 1.marginal cost 2.total cost 3.variable cost 4.al...

A: Total Cost: The sum of variable costs and fixed cost is termed as the total cost. Total Cost = Varia...

Q: Analyze how a store owner can continue to increase prices on inelastic goods

A: Inelastic good refers, the responsiveness of quantity demanded of a good does not sensitive when pri...

Q: In the short run, what is the impact on the price level and real GDP of each ofthe following:a. An i...

A: Answer - We need to find - Effect of following phenomenon on the price level and real gdp  Evaluatio...

Q: micro question 10

A: The marginal tax rate is the additional tax income due to a change in tax liability. The marginal ta...

Q: Q#21

A: Here, an increase in the price of blue jeans leads to an increase in the demand for tennis shoes.

Q: PT TR 5. Demand can be said to bdirklashig)when: a. An increase in price results in a reduction in t...

A: Change in percentage of quantity demanded divided by the change in the percentage of the price is th...

Q: Assuming there is no government or foreign sector, [1 / 1- MPC] represents a. the consumption functi...

A: Multiplier refers to the relation when there is an increase in economic factor which causes change o...

Q: please solve the following question. i will be grateful.

A: The AS-AD model is the most important model of macroeconomics. The intersection point shows the equi...

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal cos...

A: Diminishing Marginal product means that the increase in the output from the additional labor employe...

Q: With examples, examine the barriers to business entry for imperfect competition firms

A: Imperfect markets are those markets which has some or no feature of perfect competition. In this mar...

Q: Use the graph below to explain the output, profit and loss conditions formonopolistically competitiv...

A: A monopolistically firm earns profit when MR = MC. In this case MR = MC at output 40 and when the ve...

Q: 10

A: Total Cost (TC) has two components :Total Fixed Cost (TFC) and Total Variable Cost (TVC)TFC : It ref...

Q: Sam's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initial...

A: Sam shouldn’t increase production from 7 to 8 fire engines because the price effect dominates in thi...

Q: 34. If Hager's total utility from consuming falafel increased at a constant rate, no matter how mạny...

A: If there is an increase in the level of customer satisfaction, there will be an increase in the dema...

Q: macro question 5

A: From the diagram given, the equilibrium wage rate and the equilibrium quantity of labor demanded in ...

Q: Refer to the information provided in Table below to answer the question(s) that follow Table 8.2 Num...

A: We know that, TVC+TFC = TC At zero level of output, TVC=0, hence, TC=TFC TVC = AVC x Q TC = ATC x Q ...

Q: Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multin...

A: The aggregate demand (AD) is defined as the total quantity of commodities and services that are purc...

Q: Q25

A: Here, the price of commodity A falls, and as a result of this, the demand curve for commodity B shif...

Q: Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relation...

A: Business cycles are a factor in which the assessment of the overall performance of the economy durin...

Q: How does moral hazard apply to seat belt laws and helmet laws?

A: Answer -  Moral Hazard - It is the situation in which party gets involved in risky activities with k...

Q: Suppose the demand for a product is given by 2p3q=500,000+500p2 where p is the price in dollars and ...

A: Click to see the answer

Q: How does the banking system create money? Explain by giving an example.

A: The important function which the banks performs is the creation of money in the economy. This creati...

Q: Q#10

A: Changes in income of consumers is one factor which causes a shift in demand curve. An increase in in...

Q: Which type of cost does depend on a firm's output? Select one: O A. marginal cost O B. total cost O ...

A: Fixed cost is the cost that is incurred on fixed factors and does not change with the level of outpu...

Q: 38. Which of the following events will cause the demand curve for hamburgers to shift to the right? ...

A: A shift in the demand curve of a commodity takes place because of factors, other than the price of t...

Q: Economics Question

A: We know,  Total cost(TC) = Fixed cost (FC) + Variable Cost(VC) Total cost for 25 units = 400 + 200 =...

Q: Q40

A: Law of diminishing marginal product is a short run concept where some factors are fixed and some are...

Q: Suppose that a firm produces wool jackets in a monopolistically competitive market. The following gr...

A: Profit maximizing output for a monopoly is where MR=MC; In this case, it is at 20,000 Jackets; Now w...

Q: 18. New firms will exit aheriesty.competinve mzrket when: 1 average variable costs are less han aver...

A: Firms will exit the market or shut down production if it is not able to cover even its variable cost...

Q: 2. In the graph below, name the curves A, B, C and D Quantity (units per day) 3. In the graph above,...

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first que...

Q: 13. A firm operating in a perfect market maximizes its profit by adjusting Its output price until it...

A: A perfectly competitive market refers to the market structure in which there are many buyers and sel...

Q: 7. What is the Taylor rule? Explain how a central bank may follow the Taylor rule to conduct monetar...

A: John Taylor, in 1992, proposed an interest rate forecasting model, which suggested how interest rate...

Q: .23. Which of the following does not characterize monopolistic competition? a Product differentiatio...

A: A monopolistic competitive firm combines the features of a monopoly and perfect competition. Such a ...

Q: Draw a circular flow diagram. Determine the parts of the model that correspond to theflow of goods a...

A: Hi! thanks for the question but as per the guidelines we can only answer three parts of a question a...

Q: Explain why each of the following statements is false:   An increase in price causes a decrease in ...

A: An increase in price causes a decrease in demand. This statement will actually be: As the price of t...

Q: In the short run, a à firm's.fixed cost à. Is zero. Cannot be escaped. c. Çan be escaped only by cut...

A: The cost of production is the costs incurred in the process of production of the firm. There are mai...

Q: The consumption function of the economy of Macro-land is given by ? = 200 + 0.75(? − ?)The investmen...

A: Hi, according to our guidelines we allowed to answer only one question with three sub divisions in a...

Q: 6. a) Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If Bangladesh Ban...

A: As per the quantity theory of money: % Change in money supply * % change in velocity = % change in p...

Q: micro question 4

A: Price ceiling is the selection of the price which lies just below the market equilibrium price. In a...

Q: With examples, examine the barriers to business entry for imperfect competition firms

A: Barriers to entry are important part of imperfect competition as they ensure super-normal profits fo...

Q: Indicate whether the statement is true or false, and justify your answer.In recent years, each year’...

A: Answer - Medicare Tax Receipts -  It is a payroll tax. It is an employee and employer tax, which mea...

Q: The profit maximizing stage of produstion: a Begins when Average Physical Product is equal to Margin...

A: Profit is generally maximized in the second stage of production. In stage one, Marginal product is g...

Q: The marginal rate of technical substitution is

A:   The substitution is the process of replacing one item with another item which will have the same p...

Q: Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.Y...

A: Amount after one year = 200,000(1+0.05) = 210,000 Expected inflation rate is 4%, then, amount after ...

Q: Sarah's copy shop can use four alternative plants. The figure shows the average total cost curves fo...

A: Answer -  Long run average cost curve - The long-run average cost curve shows the cost of producing ...