A good measure of an investor's risk exposure if she only holds a single asset in her portfolio is:
a. the expected value of the asset's returns
b. the standard deviation of possible returns on the asset
c.the correlation coefficient with the market portfolio
c. the normal probability distribution

Answers

Answer 1

A good measure of an investor's risk exposure if she only holds a single asset in her portfolio is the standard deviation of possible returns on the asset. The correct answer is B.

Standard deviation is a statistical measure of the amount of variation or dispersion in a set of data. In the context of investing, it is often used as a measure of risk.

A higher standard deviation indicates a greater degree of variability or uncertainty in the possible returns of an asset, which suggests higher risk.

Therefore, the standard deviation of possible returns on the single asset in the investor's portfolio would provide a good measure of her risk exposure.

The expected value of the asset's returns (option a) represents the average return, but it does not capture the variability or risk.

The correlation coefficient with the market portfolio (option c) is not relevant in the context of a single asset portfolio.

The normal probability distribution (option d) is a statistical concept, but it is not directly related to measuring risk exposure in a single asset portfolio.

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Related Questions

Open in eviews the dataset provided in the cw section and restrict your sample for value of portfolio which are smaller than market returns in the period between October 2000 and December 2006.
Test the hypothesis of normality of portfolio using the test which in the null hypothesis relies on the full distribution of the data, the test and its pvalue are:
Select one:
a. the JB test with 0.000
b. the JB test with 0.355486
c. the watson test with 0.7641
d. the cramer von mises with 0.2629
e. the anderson darling with 0.3122

Answers

According to the information, the answer to the question is a. the JB test with 0.000. The p-value of 0.000 indicates that the null hypothesis of normality can be rejected at any reasonable significance level, and the distribution of portfolio returns is not normal.

To open a dataset and restrict the sample for a specific value of a variable in EViews, you can use the 'sample' command. It is possible to test the hypothesis of the normality of the portfolio using different tests, and the test that relies on the full distribution of the data is the Jarque-Bera (JB) test.

The null hypothesis of the JB test is that the portfolio returns are normally distributed, and the p-value of the test indicates the probability of obtaining a test statistic as extreme or more extreme than the one observed, assuming that the null hypothesis is true. Therefore, the smaller the p-value, the stronger the evidence against the null hypothesis and in favor of the alternative hypothesis that the distribution is not normal. Hence, a is the correct option.

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Where would you find the Create Table Dialog Box?

Data tab, Get & Transform Data group
Data tab, Outline Command group
Insert tab, Charts gallery
Insert tab, Tables command group

Answers

Answer:

d

Explanation:

took the test

Answer:

D.

Explanation:

correct on edge

in the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

Answers

In the orange market, an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter would shift the supply curve to the left.

The supply curve moves to the left when the price of the oil that orange producers burn to keep their fruit from freezing in the winter does. In economics, the supply curve reflects the relationship between the price of an item and the quantity of that good that producers are willing and able to supply. In the given case, orange production will become more expensive for citrus growers due to rising production costs, such as the price of the oil needed to prevent the oranges from freezing.

The supply curve shifts to the left as a result of their reduced willingness to offer oranges at any cost. If the demand for oranges doesn't change, this shift of the supply curve to the left will lead to a higher market price for oranges and a decrease in the amount supplied. If orange demand rises, the market price may rise even more, which would cause the supply curve to shift to the left more noticeably.

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evaluate three ways in which employment will minimize emotional stress

Answers

Answer:

Employment allows you to provide for yourself and your family. With employment, you are likely to have your basic necessities covered, like food, utilities and housing.

Employment makes you feel useful in some way, makes you feel as a contributing member of society, a feeling that helps you increase your feelings of self-worth.

Finally, employment helps you plan ahead for the future. If the employment pays well, or if you manage to spend less than you earn, employment allows you to save money, which is the first step in building a personal equity.

The ways in which employment minimizes emotional stress include:

An employment provides a means of socialisation. This would reduce isolation. An employment is a source of income. This allows people to be able to afford luxuries that would reduce emotional stress. Employment reduces idleness.

What is employment?

Employment refers to when members of the labor force have a job for which they receive some form of compensation.

Xanadu makes hd televisions. It claims that its hd televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality?.

Answers

Xanadu makes HD televisions and claims that its HD televisions have the clearest picture clarity in the industry. The dimension of quality that Xanadu is emphasizing is Performance of their HD Televisions.

A product's performance dimension has to do with how well it does what it is supposed to do, such as a television showing a clear and sharp picture as it is expected to do. The performance dimension of quality is usually regarded as the most important dimension in certain industries. Products that have better performance are perceived to have higher quality by consumers. Xanadu claims that their HD televisions have the clearest picture clarity in the industry, which is an indication that they are focusing on the performance dimension of quality in their advertising campaign. This claim indicates that their televisions perform better than their competitors' products.

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What skills do you need be a marketing manager?

Answers

Complete mba, have 1,2 years of experience

You want to buy a new car that costs $30,000, and you put 20% down payment on the purchase and finance the remainder. How much would your monthly payments be if you borrow the money for 5 years from a credit union at 6% annually?

Remember: You have to make the term of the loan and the interest rate monthly values to align with the monthly payment you want to compute)

Answers

Answer:

$459.60

Explanation:

To calculate the monthly payments on a car loan, we need to know the loan amount, the term of the loan, and the interest rate.

Here, the car costs $30,000 and you put a 20% down payment, which means you will finance the remaining $24,000.

The term of the loan is 5 years, which means there are 60 months in the loan period.

The interest rate is 6% annually. To align this rate with monthly payments, we need to divide it by 12, which gives us a monthly interest rate of 0.005.

Using the above information, we can calculate the monthly payment using the formula for the monthly payment of a loan:

Monthly Payment = [P * (r * (1+r)^n)] / [(1+r)^n - 1]

Where P is the loan amount, r is the monthly interest rate, and n is the total number of payments.

Plugging in the values, we get:

Monthly Payment = [24000 * (0.005 * (1+0.005)^60)] / [(1+0.005)^60 - 1]

Solving this equation, we get a monthly payment of approximately $459.60.

Therefore, if you borrow $24,000 for 5 years from a credit union at an annual interest rate of 6%, your monthly payments would be $459.60.

what is a housefly plssss help

Answers

A fly that’s lives in your house

Answer:

a common small fly occurring worldwide in and around human habitation. Its eggs are laid in decaying material, and the fly can be a health hazard due to its contamination of food.

Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the company raised deposits from Rosaic Ltd. Which had surplus funds. In the context of the above case: Identify and explain the source of finance being discussed above

Answers

Answer:

The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.

suppose that your income remains unchanged, but the price of gasoline decreases. you can afford to purchase more gasoline, because there has been:

Answers

The Demand curve shows the relationship between the price of a good or service and the quantity demanded over a period of time.

Demand curves can be used to determine the price-to-volume relationship for an individual consumer or for all consumers in a given market. When income stays the same but the price of gas goes down.

They can afford to buy more gas because there has been downward movement along the existing demand curve, partly explained by the income effect. When gasoline prices fall, demand for large cars increases; This is how the market shows the big car market.

Demand for large cars is shifting to the right due to lower prices, resulting in higher consumption of gasoline cars. Greater demand for cars with existing supply will increase their prices.

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within organizational architecture, the people of an organization encompasses the employees of a company and what other two items? multiple select question. the skills, values and orientation of the employees the employee manual used to govern employees' behavior the payroll system used to pay employees strategies used to recruit, compensate and retain those employees

Answers

Employees of the business as well as the skills, traits, and perspectives of other staff members are all considered when creating an organisational structure, along with the methods used to find, reward, and keep that staff.

In order to achieve desired goals and performance in both the short and long term, organisational architecture is a company or multiple firm theory that integrates human activities and capital resource utilisation within a structure of task allocation and coordination.

Organizational structures are important because they allow for the adoption of efficient decision-making procedures inside organisations. By assigning specialised work to lower-level employees, businesses can reach better decisions more quickly.

A line organization, also known as a hierarchical structure, is the most common type of Employees of the business as well as the skills, traits, and perspectives of other staff members are all considered when creating an organisational structure, along with the methods used to find, reward, and keep that staff.

In order to achieve desired goals and performance in both the short and long term, organisational architecture is a company or multiple firm theory that integrates human activities and capital resource utilisation within a structure of task allocation and coordination.

Organizational structures are important because they allow for the adoption of efficient decision-making procedures inside organisations. By assigning specialised work to lower-level employees, businesses can reach better decisions more quickly.

A line organization, also known as a hierarchical structure, is the most common type of organisational structure.

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What happens to the total expenditures for a product with elastic demand when its price goes up?

Answers

Answer:

Elasticity is more than One (Ed > 1): When demand is elastic, a fall in the price of a commodity results in increase in total expenditure on it. On the other hand, when price increases, total expenditure decreases. It means, in case of highly elastic demand, price and total expenditure move in the opposite directions.

Explanation:

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the symbol used for the variance of the population is

Answers

The symbol used for the variance of the population is σ² (sigma squared).

In statistics, the population variance is a measure of how spread out the values in a population are. It quantifies the average squared deviation of individual data points from the population mean. The symbol σ² is commonly used to represent the population variance. The square root of the variance, denoted as σ (sigma), gives the standard deviation of the population. Together, the variance and standard deviation provide insights into the variability or dispersion of data within a population.

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Communism relies on what form of economic arrangement?.

Answers

Answer:

Communism aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production (e.g., mines, mills, and factories) and the natural resources of a society.

Explanation:

Communism aspires to replace private property and a profit-driven economy with public ownership and communal management of at least the key production methods.

An accounting software company has a sales team that frequently visits local businesses. Even after a business declines their software, the accounting software company will call the business every six weeks about some new software feature or promotion. What orientation concept is this company using?

Answers

The sale orientation concept should be used for the company.

The following information related to the sales team is:

It is the department i.e. responsible for meeting out the sales goals of an organization.It contains the people i.e. sales representative, sales specialist, customer service that is controlled by the sales manager.

Since the company has a sales team so here the orientation concept i.e. used should be the sales.

Therefore we can conclude that The sale orientation concept should be used for the company.

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what are the components of micro environment​

Answers

Explanation:

the factors or elements in a firm's immediate environment which affect its performance and decision-making; these elements include the firm's suppliers, competitors, marketing intermediaries, customers and publics.

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What is Helena Fogarty doing to build brand equity for Mi Ola?

Answers

Answer:

she is using social media to build brand equity.

Explanation:

Helena Fogarty is using social media as an advertising resource due to the fact that more and more people will see it since social media is a big platform. she is also using this to her advantage as she can get feed back in order to make adjustments to her products.

Helena Fogarty is using social media to build brand equity for Mi Ola.

Brand equity simply means the value premium that a business or company generates from a product with a recognizable name.

It should be noted that brand equity is also known as the brand worth of a company. It's the social value of a brand name. Helena Fogarty is using social media to build brand equity for Mi Ola. One can advertise its product on social media and create awareness. This will help improve sales and revenue.

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If you invest $100 in a Roth IRA and earn 5% per year for 3 years, how much would it be worth at the end of three years?

Answers

If you invest $100 in a Roth IRA and earn 5% per year for 3 years, after 3 years you will get amount of $116.

The word "invest" may be described as follows: Devoting time or different assets towards attaining a goal. Using cash or capital to shop for an asset with the wish that the cost of that asset will boom and provide you with the possibility to promote at a profit.

Investing is a powerful manner to place your cash to paintings and doubtlessly construct wealth. Smart making an investment might also additionally permit your cash to outpace inflation and boom in cost. The more increase capability of making an investment is in the main because of the strength of compounding and the risk-go back tradeoff.

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The rate at which a business increases revenue from sales is

Answers

Answer:

There are only four ways to increase revenue in your business: increase the number of consumers, increase the average transaction size, increase the frequency of transactions per client, and raise your rates.

Explanation:

1. Your friend asks to borrow $50 and offers to pay you back with interest. What factors
would you consider in your decision to accept or decline their request?

Answers

The factors that you have to think about would before giving out the loan would be the following:

The loan periodThe ability to pay back the loanThe interest that is on the loanHow the money is to be returned.

What is a loan?

This is the term that is used to refer to an amount of money that would be given to a person that is the borrower by the lender for a period pf time and for them to pay back with interest.

To be able to determine if you are to give out a loan, you have to take the ability of the person to pay you back the amount as a fator.

Also you have to check the character of the person that you are to loan the money to.

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What action can you take to provide the most help to a team that has worked together for more than a year and is familiar with the project work

Answers

Answer: Aim should be reemphasized regularly, deadlines set and there should be a reward system.

Explanation:

Over familiarity breeds negligence or lost of steam or enthusiasm in a project. They are things that should be put into place to avoid being to familiar with projects and sleep on them;

- The aim and objective for which the was started should be reemphasized daily or weekly, this would help the team have it in mind that they would need to be on their best

- Deadline should be sets for smaller aspect of the project. The project should be split into phase and deadlines set to meet up each phase

- There should be a reward system. This strengthens the team to do more and make the team know that their value and input is well appreciated

Incentives influence peoples economic decisions by:____.

Answers

People's economic decisions and actions are influenced by incentives. Consumers, businesses, employees, savers, investors, and other market participants receive signals from incentives on how to use their limited resources.

What effects does an incentive have on various people?

Different people can be affected by an incentive in various ways. Because people often act in their own best interests, responses to incentives are predictable. People's behaviors alter predictably in response to changes in incentives.

What does the term "incentives" mean in economics?

The economic theory of incentives is a useful framework for deriving explanations of human behavior. Rewards or punishments for behavior are considered incentives. Positive or negative incentives are also possible.

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Explain how a discount toy store would acquire products, set prices, and handle a decrease in interest with a particular toy that the store
presently has a huge supply of. Explain how they would know interest has declined. Is it really that big of a problem to have a huge supply of the product?

Answers

Answer: A discount toy store would typically acquire products from various sources such as wholesalers, distributors, manufacturers, and even other retailers looking to sell off excess inventory. They would look for deals and negotiate with suppliers to purchase products at lower prices, which would allow them to offer lower prices to their customers.

In setting prices, the discount toy store would need to consider factors such as the cost of acquiring the product, the demand for the product, and the competition. They would set prices that are attractive to customers while still allowing them to make a profit.

If the store experiences a decrease in interest for a particular toy that they have a huge supply of, they may need to consider reducing the price of the toy to move the inventory. They may also look for creative ways to market the toy to generate renewed interest. For example, they may run promotions or bundle the toy with other products to entice customers to purchase it.

The store can know interest has declined by monitoring sales data, customer feedback, and industry trends. They can track sales of the product over time and compare it to similar products to see if there is a decline in interest. They can also ask customers for feedback and conduct surveys to understand why the product is not selling well.

Having a huge supply of a product can be a problem for a discount toy store because it ties up their inventory and prevents them from carrying new products that may sell better. It can also lead to increased storage and holding costs, which can impact their profitability. However, if the store can reduce the price of the product and generate renewed interest, they can still sell the product and make a profit, albeit at a lower margin.

Explanation: :)

Define the term "minimum acceptable rate of return" (MARR) (2)
3.2 For Mashinini Enterprises, the current MARR is set at 11%. Would the MARR be adjusted upwards or downwards for the following scenarios:
(a) An increase in the company tax rate, set by the South African Renenue Service. (2)
(b) The perceived risk on a project is high (2)
(c) There are a large number of projects to choose form (2)
Motivate your answer for each of the scenarios.

Answers

The minimum acceptable rate of return (MARR) is the minimum rate of return or discount rate that an investor or company requires in order to undertake an investment or project.

It represents the minimum rate at which the expected benefits of an investment should exceed the costs or risks associated with it. An increase in the company tax rate set by the South African Revenue Service: The MARR would be adjusted upwards. When the tax rate increases, it directly affects the cash flows generated by the investment. require a higher rate of return to compensate for the additional risk. By increasing the MARR, the investor is demanding a greater return to offset  downwards. In a situation where there are many investment opportunities available, investors may lower their MARR to consider a potential investments to meet the required rate of return, thereby increasing the chances of finding suitable projects to undertake. Overall, the adjustments to the MARR depend on the specific circumstances of the investment, such as changes in tax rates, perceived risk levels, or the availability of alternative projects, and are intended to align the expected returns with the associated risks and opportunities.

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When dealing with customers face-to-face, a good customer service technique is to:

Use a positive tone of voice
Maintain eye contact
Actively Listen

Answers

The correct option is B i.e., When dealing with customers face-to-face, a good customer service technique is to maintain eye contact.

What does "customer" mean to you?

An individual or business that purchases goods or services from another company is known as a customer. Consumers are crucial to businesses because they generate income; without them, they would cease to exist.

What three roles do customers play?

Any marketplace transaction necessitates the participation of at least three client roles: purchasing, which entails making a decision on a good or service; paying for it; and utilizing it. So, a customer can be a user or consumer as well as a buyer or payment.

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think of the retail price of the ring as 100%. how does the sale price compare to the retail price? what does this tell you about the markdown rate?

Answers

The sale price of the ring is lower than the retail price, indicating that there is a markdown applied. The markdown rate can be determined by comparing the difference between the sale price and the retail price.

The markdown rate is calculated as the percentage reduction from the retail price to the sale price. It represents the discount or reduction in price offered to customers. By comparing the sale price to the retail price, we can determine the markdown rate as a percentage.

For example, if the sale price is 80% of the retail price, it means that there is a 20% markdown applied to the ring. This indicates that customers are getting a 20% discount off the original retail price.

Knowing the markdown rate is important for retailers as it helps them analyze their pricing strategy, evaluate the effectiveness of their sales promotions, and understand customer preferences and price sensitivity.

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Which of the following is NOT a technical competency that a managerial accountant needs to possess? a. Internal Controls b. Decision Analysis c. Tax return preparation d. Technology

Answers

Among the options given, the one that is NOT a technical competency that a managerial accountant needs to possess is c. Tax return preparation.

Managerial accounting primarily focuses on providing information for internal decision-making within an organization. Key competencies in this field include a. Internal Controls, which help ensure the accuracy and reliability of financial information; b. Decision Analysis, which involves evaluating various options to support business decisions; and d. Technology, as it plays a significant role in collecting, analyzing, and presenting financial data.

On the other hand, tax return preparation is a competency more closely associated with tax accounting, a separate branch of the accounting profession. Tax accountants specialize in navigating tax laws and regulations to minimize an organization's tax liability, while ensuring compliance with tax authorities. Although some managerial accountants might have knowledge of tax return preparation, it is not a core competency of their role. Hence, the correct answer is Option C.

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Senior managers engage in ______ when they structure the organizational relationships to work cooperatively to achieve goals.

Answers

The thing which senior managers engage in when they structure the organizational relationships to work cooperatively to achieve goals is:

Efficiency and Effectiveness.

What is Efficiency?

This refers to the ability to perform a task or tasks quickly, accurately and with minimal error.

With this in mind, we can see that when senior managers prioritize efficiency and effectiveness in their organizational structure, then they would easily accomplish goals.

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why is channel management important for successful marketing

Answers

Answer:

Explanation:

Because it helps many people in this which is similar to a Marketing.




In
, people invest money in a company in exchange for the company’s
.


Answers

Answer:

In equity crowdfunding, people invest money in a company in exchange for the company’s shares

Explanation:

Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.

Startups and early-stage companies use this method to raise capital.

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