An analyst has developed the following data for two companies, PNS Manufacturing (PNS) and InCharge Travel (InCharge). In fact, the most important investment decisions you have to make are actually pretty simple. answer choices . C) Quality. ... What is the effective annual rate of return for this investment? Johnson & Johnson - Get Report is a broadly diversified healthcare company. A widely diversified portfolio with a lot of different holdings is generally more trouble to monitor and adjust since the investor has to stay on top of many investments. You can't have 3 things in the same industry or field and call that diversified. A financial planner writing in the New York Times gave the following sarcastic investment advice, “On Jan. 1 of each year, just figure out which asset class will do really well and move all your money into that investment.” All of the following are considered an asset class, except: A. debts. Answer:C. Both of these( index and mutual funds)Explanation:Index funds and mutual funds are examples of diversified investments. Owning many securities reduces volatility by decreasing the impact of large price swings above or below the average return in a single security. At Diversified Investment Services, we understand that individuals face unique challenges as they prepare for retirement. 5688 users searched for this homework answer last month and 20 are doing it now, let’s get your homework done. On the other hand, buying individual stocks can tailor your portfolio to meet your specific needs. What is income available with a person after deducting for taxes called? Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in 6 months. c)Maxing out your 401(k) before you contribute to a Roth IRA. The sampling distribution of a statistic is. Types of Investment expenditure: This investment expenditure can be broadly classified into the following types: Autonomous investment expenditure is the one that does not depend on the current production or the demand for goods. This expenditure is not made with the profit motive. b)8-12 different stocks in different stock exchanges. A diversified fund is an investment fund that is broadly diversified across multiple market sectors or geographic regions. Asset allocation basically means portfolio diversification. Help your mates do their homework and share Top Homework Answers with them, it’s completely free and easy to use! given right triangle jkl, what is the value of cos(l). Mutual funds are actively managed, whereas Index funds are passively managed. Cash Equivalent. From a financial standpoint, rental property is at the top of the list of assets to own. Which of the following is considered the most accurate method of measuring GDP? Cash is generally a stable investment that provides steady returns. Updated July 04, 2020. An index fund is a portfolio of securities designed to track the price movement of a financial market index. A Budget Surplus Would Exist When Which Of The Following Occurs? B) It is well diversified by type of asset. d. investing in a Russell 2000 index mutual fund. A. Mutual Fund. Report Error "D" of course. Different types of classes of assets have a different performance during the same economic event. Time will tell. Which Of The Following Is Considered Investment Spending In Macroeconomics? 4. dependents like a child or elderly parent/grandparent living … Diversified Investments Definition. 2. Thi… b. Compute the Treynor measure for each portfolio and the market portfolio. [A] An open-end investment company. Cash Equivalent. A diversified investment is a portfolio of various assets that earns the highest return for the least risk. Which of the following is NOT a banking term or fee that could result in an additional charge on your checking account? Because stocks are generally more volatile than other types of assets, your investment in a stock could be worth less if and when you decide to sell it. Ryan Jones Buys Some GM Stock And Bonds. They combine stocks of different companies to form one unit of an investment basket. C. cash equivalents. Only the last choice has that. The management fee paid to a fund's investment adviser is considered part of the operating costs of the fund. Which of the following is considered a "diversified" investment? Why rental property? Past performance is not indicative of future results. Seeking out a diversified investment firm is highly advised, as the members of the firm will be prepared to make good investments on behalf of their clients. both of these "The amount you pay your insurer for your insurance plan is which of the following?" If this investor were seeking to further diversify, which of the following would be the BEST recommendation? The Level Of Investment In Markets Often Indicates, Which Of The Following Investment Choices Is Least Risky, Which Of The Following Is Not Something You Should…. Your email address will not be published. In other words, there are portfolio investments. A. Diversified Fund: A diversified fund is a fund that is broadly diversified across multiple market sectors or geographic regions. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. The process of diversification includes investing in … The investor is mildly concerned about a downturn in the stock market. The input in the box below will not be graded, but may be reviewed and considered by your instructor. Question: 1. dependents like a child or elderly parent/grandparent living … While having a diversified portfolio is usually a wise practice, any investment strategy comes with risk. Which Is A Measure Of The Efficiency Of An Investment, A High-Risk Investment Is Characterized By. But if it doesn’t, that would mean 11% of Scottish Mortgage Investment Trust’s portfolio would be negatively affected. Diversification can help manage risk. The benefits of random diversification eventually no longer continue as more securities are added c. Random diversification, if done correctly, can eliminate all risk in a portfolio d. Random diversification eventually removes all company specific risk from a portfolio Ans: b 13. Stock TUV, Because It Has The Highest Beta. The Balance does not provide tax, investment, or financial services and advice. d)Having bonds and precious metals in … During the period under consideration, RFR = 0.07. a. Compute the Sharpe measure for each portfolio and the market portfolio. [A] A Balanced Fund Even though the company lost a recent judgement in an opioid case … View Answer It holds multiple securities, often in … Which of the following is considered a “diversified” investment? A large number of firms compete and Each firm produces a differentiated product is a characteristic of the market structure for monopolistic competition. Which Investment Has The Least Liquidity? Which of the following is NOT considered when trying to diversify a municipal bond portfolio? Index funds are less expensive investments than mutual funds because they do not require the services of a professional fund manager. At Diversified Investment Strategies, we take a proactive TEAM approach, through our TEAM BASED MODEL of handling all facets of financial needs. Rebalancing is a key to maintaining risk levels over time.It's easy to find people with investing ideas—talking heads on TV, or a \"tip\" from your neighbor. In a well diversified portfolio, _____ risk is negligible. The following portfolios are being considered for investment. The 4 primary components of a diversified portfolio. List At Least Four Investment Alternatives. "D" of course. 10 minutes ago Which of the following would you NOT find on a W-4: Exemptions—can claim 1 if not claimed as a dependent on someone else's; addition exemptions for t hose living in a household (i.e. A diversified investment company could be either a closed-end company or an open-end company. The risk element is defined as a potential risk confined to that company or its market. A fund with more securities is said to be better diversified than a fund with smaller number of securities. 2. 6. They can also act as a cushion against the unpredictable ups and downs of the stock market, as they often behave differently than stocks. In other words, there are portfolio investments. Which of the following is considered a "diversified" investment? Which of the following is a characteristic of the monopolistic competition? B) Price. Stocks represent the most aggressive portion of your portfolio and provide the opportunity for higher growth over the long term. c. investing in a multi-strategy hedge fund. Required fields are marked *. Investment refers to the spread of money in diversified avenues comprise of financial securities, commodities, stock. What is the definition of diversifiable risk? Johnson & Johnson [NYSE: JNJ] We think of Johnson & Johnson as the maker of Band-Aids, baby shampoo, and other home health products, but this company does so much more. 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