The total risk of a well-diversified portfolio of stocks can be calculated as the product of the_____ times the ______.

Answers

Answer 1

The total risk of a well-diversified portfolio of stocks cannot be calculated as the product of two specific factors. Instead, it is commonly understood that the total risk of a portfolio can be decomposed into two main components: systematic risk and unsystematic risk.

Systematic risk, also known as market risk, refers to the risk inherent in the overall market or a particular market segment. It is influenced by macroeconomic factors, such as interest rates, inflation, geopolitical events, and market sentiment. Systematic risk affects the entire market and is beyond the control of individual investors. Examples of systematic risks include recessions, political instability, and shifts in consumer spending patterns.

Unsystematic risk, also known as idiosyncratic risk, is unique to individual stocks or specific sectors and can be diversified away through proper portfolio diversification. Unsystematic risk arises from company-specific factors, such as management changes, competitive dynamics, regulatory issues, or technological advancements. By holding a well-diversified portfolio with a mix of different stocks and sectors, investors can reduce unsystematic risk.

To calculate the total risk of a portfolio, the standard approach involves examining the portfolio's variance or standard deviation, which captures both systematic and unsystematic risk. This calculation considers the individual stock returns, their respective weights in the portfolio, and their correlations with one another. Through diversification, investors seek to minimize unsystematic risk, while systematic risk remains an inherent part of the portfolio's exposure to the overall market.

In summary, the total risk of a well-diversified portfolio of stocks cannot be determined by multiplying two specific factors. Instead, it is assessed by considering the combined effects of systematic risk (market risk) and unsystematic risk (idiosyncratic risk) on the portfolio's overall variance or standard deviation.

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Related Questions

A decrease in the price of a complementary good will cause its complement’s equilibrium price to ______________ and the equilibrium quantity to ______________.

Answers

A decrease in the price of a complementary good will cause its complement’s equilibrium price to decrease and the equilibrium quantity to decrease.

Complementary goods are those that are ingested together. Substitutes are goods that can be consumed in place of the original. Prices of complementary or substitute goods also cause the demand curve to shift. When the price of a complementary good falls, the quantity demanded of one rise and the demand for the other rises. When the price of a substitute good falls, the quantity demanded for that good rises, but the demand for the good for which it is substituted falls.

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how do u respond to lol

Answers

Answer:

depends on what you are lol ing about

Explanation:

Explain what you learned about ethics in a work place

Answers

An organization that is perceived to act ethically by employees can realize positive benefits and improved business outcomes. The perception of ethical behavior can increase employee performance, job satisfaction, organizational commitment, trust, and organizational citizenship behaviors.

We want to be moral as it defines who we're for our part and as a society. These are norms of conduct that everybody must follow. Our society may fall into chaos if we take delivery of that every people ought to select out and pick what the proper component to do is.

According to this knowledge, “ethics” leans in the direction of choices primarily based totally upon character, and the greater subjective knowledge of proper and incorrect through individuals – whereas “morals” emphasizes the widely-shared communal or societal norms approximately proper and incorrect.

Ethics calls for that we enhance lifestyles' circumstances, now no longer from a wealth angle or success, but through accomplishing virtuous conduct. Making matters higher is to guide lifestyles of virtue -- try to obtain happiness in our lives and keep away from harming others. Treat Others Fairly. The Golden Rule comes into play here.

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Which of the following would qualify as a sedentary job?

Answers

there isnt anything on there

WILL MARK BRAINLIEST IF ANSWER IS CORRECT!!
Which of the following might a homeowner's insurance company be unwilling to cover?
A. Theft
B. A person getting injured on the property
C. Fire
D. A natural disaster

Answers

Answer:

D. A natural disaster

Explanation:

Natural disasters such as floods, earthquakes, and wars occur intermittently and usually with high losses. An accurate estimation of their frequency and the severity of losses is not impossible.  Due to these reasons,  private insurance companies do not cover natural disasters.

When natural disasters strike, there are likely to affect many people at the same time. Insurance companies may be unable to compensate all of them for the extensive losses. The principle through which insurance companies operate will be de

An account with an initial balance of $1500 earns 7% interest for 1. 5 years. What is the ending balance? Enter your answer in the box.

Answers

Answer:1,657.50

Explanation:

Write a question keep it simple

Answers

Answer:

Why do people break up if they love each other?

Explanation:

sorry it's not simple lol

what are some economic concerns that may need to be addressed in the future?

Answers

Over population, It can result from an increase in births (fertility rate), a decline in the mortality rate, an increase in immigration, or a depletion of resources. And less food for people who actually need it the state that had the least amount of people is China because it has a one child policy and if they break the law they can be executed and it’s to maintain current unsustainable consumption patterns while blaming the poor, women, people of color, immigrants, and those residing in the “global South” who produce a negligible impact on the environment.

you are managing a brand with low sales. awareness is at 20%, price is average, and satisfaction is high. what should you do? increase advertising. lower the price. reformulate the product. make no changes.

Answers

Option (A), You oversee a brand with weak sales. 20% of people are aware, prices are average, and customer satisfaction is high. You should boost your advertising.

What core characteristic of a brand can influence consumers' purchasing decisions by as much as 60%?

Studies show that between 60 and 80 percent of the time, a product's color has an impact on a customer's choice to purchase it. This means that choosing the right hue might influence your entire sales in addition to enhancing brand connections.

How does advertising entice consumers?

Advertising may increase sales by alerting current and potential customers about your new product launches, special offers, and improvements. In addition to reminding current customers of your company's brand, advertising can assist you in creating or developing one.

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WILL GIVE BRAINLIEST, NEED HELP ASAP

1. A company can reduce a surplus of goods if they:

A. Decrease the price
B. Increase the price
C.Does not change the price

2. IPhones have been placed for sale in the market. They can only produce 1 million phones a month, but 200 million want to buy a phone each month creating a shortage. How can Apple eliminate the shortage?

A. Increase the price
B. Decrease the price
C. Do nothing to the price

Answers

I think 1 is a but I’m not sure

Your company will need a business plan in order to do what? A. Increase revenue. B. Identify an opportunity. C. Pay taxes. D. Get funding. Please select the best answer from the choices provided

Answers

Answer:

Get Funding

Explanation:

Hope this helps :)

Answer:

D

Explanation:

Get Funding

In a corporation, the members of company share profit, but the liability is limited to

Answers

In a corporation, the members of the company share profit but the liability is limited to the amount of investment they have made in the company.

What Is Limited Liability?

Limited legal responsibility is a type of legal structure for a company wherein a company loss will now no longer exceed the quantity invested in a partnership or restricted liability corporation (LLC).

Thus, investors' and owners' non-public property aren't at danger if the business enterprise fails.

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define finance education for class 8

Answers

Financial literacy is the education and understanding of knowing how money is made, spent, and saved, as well as the skills and ability to use financial resources to make decisions. These decisions include how to generate, invest, spend, and save money.

Why are shareholders more keen on investing in high-risk projects during times of financial distress?

Answers

Answer:

Because the shares price of that company will be reduced that gives shareholders to own more thus owning a greater percentage of the company

Explanation:

Let's say Washer Ltd is high-risk and they have taken a stand to reduce their ordinary share price in order to attract investors, from R6,90 to R3, 90 per share

Instead of the shareholder paying the full price for less shares, he can buy more share for half the amount of money

. Given the following holding-period return, compute the average returns and the standard deviations for the Zemin Corporation and for the market portfolio. Month 1 2 3 4 5 Zemin Corp. 6% 3 1 -3 5 0 Market 4% 2 -1 -2 2 2 b. If Zemin's beta is 1.54 and the risk-free rate is 4 percent, what return would be expected by an investor owning Zemin? (Note: Because the preceding returns are based on monthly data, you will nee to annualize the returns to make them comparable to the risk-free rate. For simplicity, you can convert from monthly returns to yearly returns by multiplying the average monthly returns by 12). c. How does Zemin's historical average return compare with the return you should expect based on the CAPM and the firm's systematic risk?

Answers

a. To compute the average return and standard deviations, we can use the following formulas: Zemin Corporation:

Average Return = (6% + 3% + 1% - 3% + 5% + 0%) / 6 = 2%

Standard Deviation = SQRT([(6% - 2%)^2 + (3% - 2%)^2 + (1% - 2%)^2 + (-3% - 2%)^2 + (5% - 2%)^2 + (0% - 2%)^2] / 6) ≈ 3.16%

Market Portfolio: Average Return = (4% + 2% - 1% - 2% + 2% + 2%) / 6 = 1.5%

Standard Deviation = SQRT([(4% - 1.5%)^2 + (2% - 1.5%)^2 + (-1% - 1.5%)^2 + (-2% - 1.5%)^2 + (2% - 1.5%)^2 + (2% - 1.5%)^2] / 6) ≈ 2.28%

b. To calculate the expected return based on the Capital Asset Pricing Model (CAPM), we can use the following formula:

Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)

Using Zemin's beta of 1.54 and the risk-free rate of 4%, we can calculate the expected return:

Expected Return = 4% + 1.54 * (1.5% - 4%) ≈ -0.77%

Since the calculated expected return is negative (-0.77%), an investor owning Zemin would expect a negative return based on the CAPM.

c. Zemin's historical average return of 2% is higher than the expected return of -0.77% based on the CAPM and the firm's systematic risk. This suggests that Zemin has outperformed the expected return based on its risk level, indicating a higher level of return for the given level of systematic risk.

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Which type of information includes personal payroll medical and operational information.

Answers

The type of information including personal payroll medical and operational information is Sensitive.

Fairly touchy humans tend to pick up on the wishes and feelings of others. They hate letting human beings down. Studying to mention no is an assignment and a need for HSPs because they are able to sense overwhelmed by the demands of others, particularly due to the fact they can sense their pals' unhappiness if HSPs want to mention no.

Being Sensitive isn't a horrific aspect! Your tough-stressed-out nature brings you blessings of pleasure and happiness. Your consciousness of and empathy for different people are assets of electricity. You certainly surprise why human beings and matters are the manners they may be.

The advantageous developments of people who are particularly touchy consist of emotional consciousness, empathy for others, the potential to pick out up on small cues that others pass over, dedication to equity and justice, passionate and modern thinking, and the capability to demonstrate desirable leadership through valuing others.

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Question 4 3 pts Is the following statement true or false? Given is the graph below of the oil market. Without the tax, the equilibrium quantity would be 4 million gallons. The tax reduces this to 2 m

Answers

The given statement is false. Equilibrium price and quantity determine where the supply and demand curves intersect. The equilibrium quantity would be 5 million gallons, not 4 million gallons, if there were no tax imposed.

The imposition of the tax, on the other hand, results in a reduction in the equilibrium quantity from 5 million gallons to 4 million gallons. There are a few things to keep in mind while solving a question like this.

The equilibrium quantity, also known as market equilibrium, refers to the quantity of a commodity or service demanded and supplied in the market when there is no shortage or surplus. It's also the point where the supply and demand curves intersect.

The imposition of a tax raises the equilibrium price while lowering the equilibrium quantity. A tax is considered a form of government revenue, with a portion of the total amount paid by consumers and the rest paid by producers. The equilibrium quantity in the oil market would be 5 million gallons, not 4 million gallons, if there were no tax imposed.

The tax, on the other hand, lowers the equilibrium quantity from 5 million gallons to 4 million gallons.

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Jordan Company has initiate production of 250 tables each week. The percentage of good-quality tables is 85%, while the percentage of products that can reworked is 56%. 1- What is the weekly yield for this Company? 2- What is the quantity of tables that have poor quality? 3- If the company has a contract with other companies to supply them with 245 tables every week, so what is the percentage of reworked of poor-quality products it should have? 4. If the company cannot increase the percentage of rework-quality of tables, then what is the percentage of good quality that can yield 245 tables?

Answers

To calculate the weekly yield for Jordan Company, we need to find the percentage of good-quality tables. Since the percentage of good-quality tables is 85%, we can calculate the yield by multiplying the production quantity by the percentage of good-quality tables:

Weekly yield = 250 tables * 85% = 212.5 tables

Therefore, the weekly yield for Jordan Company is 212.5 tables.

2- To find the quantity of tables with poor quality, we can subtract the percentage of good-quality tables from 100%:

Quantity of tables with poor quality = 250 tables * (100% - 85%) = 250 tables * 15% = 37.5 tables

So, the quantity of tables with poor quality is 37.5 tables.

3- If the company has a contract to supply 245 tables every week, we can calculate the percentage of reworked poor-quality products they should have. First, we need to find the number of poor-quality tables:

Number of poor-quality tables = 245 tables * (100% - 85%) = 245 tables * 15% = 36.75 tables

To calculate the percentage of reworked poor-quality products, we divide the number of poor-quality tables by the production quantity:

Percentage of reworked poor-quality products = (36.75 tables / 250 tables) * 100% = 14.7%

So, the company should have a percentage of reworked poor-quality products of 14.7% to supply 245 tables every week.

4- If the company cannot increase the percentage of rework-quality tables, we can calculate the percentage of good quality that can yield 245 tables. First, we need to find the number of good-quality tables:

Number of good-quality tables = 245 tables / 85% = 288.24 tables

To find the percentage of good-quality tables that can yield 245 tables, we divide the number of good-quality tables by the production quantity:

Percentage of good quality = (288.24 tables / 250 tables) * 100% = 115.3%

So, the percentage of good quality that can yield 245 tables is 115.3%.

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brittany works for a company that sells accounting software to large financial firms. for her compensation, she receives a certain fixed amount per year, plus an additional amount that is calculated based on certain subjective criteria, such as the company's profitability. what type of salesforce compensation plan is this?

Answers

Salary plus bonus type of salesforce compensation plan is this. A salesperson could be promoting their own items, whereas a sales representative always works for (represents) a corporation. The two names, however, are frequently used interchangeably.

Although salesperson, sales representative, and sales rep are frequently used in their stead, the phrases "salesman" and "saleswoman" are still frequently used. Instead of selling face-to-face, salespeople spend more time in meetings, dealing with support staff at their organizations, traveling, waiting for sales interviews, filling out paperwork, and providing customer service. Telemarketing is the practice of selling products or services directly to prospective clients over the phone, the internet, or fax.

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How much notice does the Worker Adjustment and Retraining Notification
(WARN) Act require employers give their employees when a facility is
closing?
A. 120 days
B. 90 days
C. 60 days
D. 30 days

Answers

Answer:60 days

Explanation:

ap3x

Answer:

The question may also ask:

The Worker Adjustment and Retraining Notification (WARN) Act requires that companies meet notice requirements of how many days before reducing a workforce?

The answer is still 60 days

Explanation:

Which of the following describes the relationship between successful marketing campaigns and increased sales or attendance?
A. Marketing campaigns can increase the attendance at a game due to the additional promotional strategies.

B. Marketing campaigns generally do not have an impact on game attendance.

C. Marketing campaigns usually result in decreased game attendance.

D. Unsuccessful marketing campaigns usually result in increased game attendance.

Answers

The correct statement is marketing campaigns can increase the attendance at a game due to the additional promotional strategies. Option a is correct.

Marketing is a set of activities that involves creating, promoting, and distributing a product or service to a specific audience. The goal of marketing is to attract and retain customers by meeting their needs and wants.

The relationship between successful marketing campaigns and increased sales or attendance is that marketing campaigns can increase attendance at a game due to the additional promotional strategies. For example, marketing campaigns can increase attendance at a game by promoting the game through social media platforms, billboards, commercials, or radio ads.

These promotions help create buzz around the game, and more people are likely to attend because they are aware of the event.

Therefore, a is correct.

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How does inflation affect standard of living?

Answers

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Inflation might force you to cut out luxuries and “tighten your belt” to keep up with the rising cost-of-living.

Career Cluster
If your dream is to be an elementary school teacher, the
might be best for you.
A. Education and Training
B. Human Services
C. Health Sciences
D. Training and Instruction

Answers

Answer: A

Explanation

Silva and Renate were given money in the ratio of 5 to 3. Silva's share was $60. How much did Renate receive.

Answers

Answer:

$36

Explanation:

share was $60. How much did Renate receive

The sharing ratio was 5 to 3:, Silva would get 5 portions and Renate 3 portions.

in fraction form, Silva would get 5/8 while Renate would get 3/8

If Silva got $60, Renate would get?

5/8 = 60:  then 3 /8= 60/5 x 3

=12 x 3

=$36

Welfare includes all of the following EXCEPT
(a) Social Security
(b) Medicare
(c) Occupational Safety and Health Administration
(d) Medicaid

Answers

Answer:

(C) Occupational Safety and Health Administration

Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..

Help me please.. there is no option on here for Human Resources principals, so I jus clicked business

Answers

Answer:

it should be vision B because the vision contains the reason why the company was formed

Please select the word from the list that best fits the definition Enjoy music in their free time

Answers

Answer:

Auditory Learners

Explanation:

I got it right on edge 2022.

By making small purchases and paying the ______________ amount each month, a potential borrower shows a lender how they use credit wisely.
entire

minimum payment

late fee

interest

Answers

Answer:

entire

Explanation:

Lenders will always check a borrower's credit history before advancing credit to them. The lenders' main interest is to assess the risk involved in extending credit to a customer. A borrower with a history of late payments and defaulting on loans is considered high- risk and unsuitable for credit facilities.

Lenders prefer clients who are quick in debt repayments. They consider them a low-risk customer and highly unlikely to default on loans. Such customers will always have a low debt-to-income ratio.

in the haber process for the production of ammonia, what is the relationship between the rate of production of ammonia and the rate of consumption of hydrogen?

Answers

In the Haber process for the production of ammonia, e) Δ[NH3] / Δt = 2/3 Δ [H2] / Δt is the relationship between the rate of production of ammonia and the rate of consumption of hydrogen.

The Haber process, commonly known as the Haber-Bosch process, is an artificial nitrogen fixation method that is used to produce ammonia today.

It is named for its creators, German chemists Fritz Haber and Carl Bosch, who created it in the first decade of the twentieth century.

The reaction involved in the Haber process has the following equation: N2(g) + 3 H2(g) -> 2 NH3 (g). Remember that the rate of reaction refers to how quickly or slowly a reaction proceeds.

In the Haber process for ammonia production, the connection between ammonia production rate and hydrogen consumption rate is [NH3] / t = 2/3 [H2] / t.

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Correct question:

In the Haber process for the production of ammonia, what is the relationship between the rate of production of ammonia and the rate of consumption of hydrogen?

N2(g) + 3 H2(g) -> 2 NH3(g)

Answer Choices

a.) Δ[NH3] / Δt = −3/2 Δ [H2] / Δt

b.) Δ[NH3] / Δt = Δ [H2] / Δt

c.) 3/2 Δ[NH3] / Δt = Δ [H2] / Δt

d.) Δ[NH3] / Δt = −2/3 Δ [H2] / Δt

e.) Δ[NH3] / Δt = 2/3 Δ [H2] / Δt

f.) 2/3 Δ[NH3] / Δt = −Δ [H2] / Δt

A message sent by an HR manager asking all employees to submit details about overtime done in the previous quarter is an example of routine request

Answers

Answer:

D) information or action

Explanation:

These are the options for the question

A) settlements to claims

B) recommendations

C) adjustments

D) information or action

E) references

Routine request can be regarded as a request for information, which is been contained in case files, indices,schedules as well as dockets that doesn't look for impounded as well as confidential and sealed information.

When sending a routine email

that give recognizion for a job that is well done, the following should be included;

✓rationale that state work important of the work.

✓closing statement which encourages continued excellence.

✓specific descriptionthat explain purpose of the message.

It should be noted that message sent by an HR manager asking all employees to submit details about overtime done in the previous quarter is an example of routine request information or action

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