How does diversification reduce risk?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (10 reviews)
To conclude we can say that by spreading risks among m...View the full answer
Answered By
Anthony Ngatia
I have three academic degrees i.e bachelors degree in Education(English & Literature),bachelors degree in business administration(entrepreneurship option),and masters degree in business administration(strategic management) in addition to a diploma in business management.I have spent much of my life in the academia where I have taught at high school,middle level colleges level and at university level.I have been an active academic essays writer since 2011 where I have worked with some of the most reputable essay companies based in Europe and in the US.I have over the years perfected my academic writing skills as a result of tackling numerous different assignments.I do not plagiarize and I maintain competitive quality in all the assignments that I handle.I am driven by strong work ethics and a firm conviction that I should "Do Unto others as I would Like them to do to me".
4.80+
76+ Reviews
152+ Question Solved
Related Book For
Managing in a Global Economy Demystifying International Macroeconomics
ISBN: 978-1285055428
2nd edition
Authors: John E. Marthinsen
Question Posted:
Students also viewed these Economics questions
-
How many securities must you hold for adequate diversification? Does diversification eliminate all risk, or does some remain? Explain.
-
How well does diversification work in reducing the risk of a portfolio? Are there limits to diversification? Do the effects kick in immediately?
-
1. Why is diversification important? How is diversification achieved? 2. Solely on the basis of diversification, is there an argument for selling any of the stocks? In addition to risk reduction...
-
The monochromatic emissivity of a diffuse-surface at 1600 K varies with wavelength in the following manner : = 0.4 for 0
-
A newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead...
-
A 0 . 2 5 0 kg ball is pressed against a vertical spring that has a spring constant of 7 5 . 0 N / m and is compressed 2 5 cm from its equilibrium position. The other end of the spring is firmly...
-
Explain why the sample variance formula is \[\sum_{i=1}^{N} \frac{\left(y_{i}-\bar{y} ight)^{2}}{N-1}\] instead of \[\sum_{i=1}^{N} \frac{\left(y_{i}-\bar{y} ight)^{2}}{N}\]
-
Using the information in P4- 6 and P4- 7, perform the following steps for Tides Tea Company: In P4- 6 Tides Tea Company began operations on January 1, 2015. During the first year of business, the...
-
Estimate the value of using Simpson's rule. 15 x+1 15 dx by using n=4 subintervals of equal width
-
Shown on the following page are responsibility income statements for Butterfield, Inc., for the month of March. Instructions a. The company plans to initiate an advertising campaign for one of the...
-
Explain the extended disbursements float. How is it related to a nation's check clearing system? How can companies use it for cash management purposes?
-
Which of the following is an example of direct financing, and which is an example of indirect financing? a. Fred Fornow borrows $20,000 to purchase a new car. b. Gloria Gregory deposits $10,000 in a...
-
Why do organizations decline? What steps can top management take to halt decline and restore organizational growth?
-
Explain how quality management impacts the quality of care and patient safety. Detail how a healthcare leader can incorporate strategies that foster better patient outcomes, fiscal responsibility,...
-
What is the yield to maturity for a 30-year bond with a 9% annual coupon, paid semi-annually and selling for $1,249.45?
-
Define Organizational Behavior. What do you mean by 'Organizational Behavior'? What is scope of organizational behavior? Write short notes on Organization. What do you understand by Diversity?...
-
What happens to the difference between the billed amount and the allowed amount unless it can be billed to the patient under the payer's rules?
-
define and discuss the major differences between financial and managerial accounting compare and contrast accrual basis accounting with cash basis accounting how does a healthcare organization...
-
When must an offeree communicate acceptance to the offer or in a specific form?
-
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
-
Chinese workers earn only $.75 an hour; if we allow China to export as much as it likes, our workers will be forced down to the same level. You cant import a $10 shirt without importing the $.75 wage...
-
Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is still considerably...
-
Anyone who has visited Japan knows it is an incredibly expensive place; although Japanese workers earn about the same as their U.S. counterparts, the purchasing power of their incomes is about...
-
how to connect to oracle database from cpp file step by step? I use Visual Studio and Oracle Instant Client. ? Explain your answer
-
How to determine the storage configuration for a database server for 1000+ staff? The server runs Linux and will have an Oracle database server. The estimated databases currently consume about 8 TB...
-
1. Explain on the financial statement analysis. 2. Explain on EIGHT (8) financial ratio. 3. Describe FIVE (5) types of financial objectives.
Study smarter with the SolutionInn App