A prospect is heavily invested in the common stock of an employer's company, ABC, relative to other investments. The stock has performed well over the last 15 years and the prospect is very happy with the investment. After reviewing financial and nonfinancial criteria, you have determined that A) selling a portion of ABC and using the proceeds to purchase mutual funds will reduce his nonsystematic risk. B) owning too much ABC stock has increased credit risk to an unacceptable level. C) he should begin to liquidate the ABC stock using the FIFO accounting method. D) because ABC has performed well over a 15-year period, he should keep the stock but sell it if inside information indicates a fall in value is imminent.

Answers

Answer 1

Answer: A) selling a portion of ABC and using the proceeds to purchase mutual funds will reduce his nonsystematic risk.

Explanation:

We should note that in this case, the prospect has a large investment in the company and therefore is exposed to non systematic risk.

To reduce the risk due to the prospect's large investment, it is advisable for the prospect to sell part of the portion of ABC stock and then the proceed gotten from the sale can be used to buy mutual funds. This is diversification and helps reduce risk.


Related Questions

Would you ever consider opening a restaurant? Why or why not?

Answers

Answer:

yes

Explanation:

because I would be surrounded by food at all times

Answer:

yes

Explanation:

I would be able to design my own menu and maybe make some animatronics.

;)

If you are a manager and you are facing crises, how will you communicate the information to your employees

Answers

Answer:

The following are methods I could communicate the information to my employees:

1. I will need to analyze the kind of crises, in other words, define the crises I'm facing so as to know how to share them with my employees.

2. What I hope to achieve by communicating the information to my employees is also to be considered. Am I sharing this information to get advice from them, or do I want empathy, or do I want them to learn?

3.The way I communicate the information would also depend on the relationship I have with my employees.

4. I would call all my employees into my office or conference room noting I don't do this when they are tired or stressed so I could get maximum attention from them.

5. All employees regardless of their position would be present.

6. After communicating with them on the crises I'm facing, I would wait for feedback which might be corrections, advice, observations, and solutions.

7. I would be open to feedbacks to emphasize how much I care about hearing from my employees at all levels

Explanation:

When you are a manager and you are facing crises, the way you communicate the information to your employees would be much different from communicating to the same employees if you are handling a crisis situation in the company.

Products sold by companies in the United States to consumers in China are exports.
True
O False

Answers

The answer is True if I’m correct

Answer:

True

Explanation:

I think I have the correct answers but I would like a second opinion

Answers

Answer:

the answer is c

Explanation:

3 is in the hundreds

Items a through l represent possible errors and fraud that you suspect may be present at rex company. the accompanying list of auditing procedures represents procedures that the auditor would consider performing to gather evidence concerning possible errors and fraud. for each item, select one or two procedures, as indicated, that the auditor most likely would perform to gather evidence in support of that item. the procedures on the list may be selected once, more than once, or not at all.

Answers

Answer:

a. Compare the details of cash receipts with journal entries.

b. Prepare a bank transfer schedule.

c. Confirm the terms of borrowing with the lenders agreement.

d. Send request to confirm the entity's account receivable balance.

e. Inspect payroll data of employees and cross check with the transaction recorded.

f. Obtain cut off bank statement to reconcile the transaction.

g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.

h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.

i. Inspect the payroll endorsements for similar handwriting.

Explanation:

Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.

what is an important function of the Federal trade commission?

A. Inspecting workplaces for safety violations

B. Deciding if discrimination complaints are valid

C. Negotiating trade agreements

D. Identifying unfair pricing strategies ​

Answers

Answer:

I think it might be B.

Explanation:

The important function of the federal trade commission is to identify unfair pricing strategies ​Thus option D is correct.

What is the federal trade commission?

A federal trade commission is an independent agency of the principal state whose main aim is to enforce the civil US antitrust laws.

Along with the promotion of customer protection and shares the jurisdiction over the federal civil antitrust enforcement with the department of justice.

Find out more information about the Federal trade commission.

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What is the function of the cell wall?

A tells the cell what to do

B lets water pass in and out

C lets molecules pass in and out

D gives the plant structure and support

Answers

Answer:

D

Explanation:

provides the cell with both structural support and protection, and also acts as a filtering mechanism. ... In bacteria, the cell wall is composed of peptidoglycan.

Which of the following documents are NOT considered permanent records?

Answers

Answer:

Birth and death certificates

Which of the following is best for targeted marketing tactics? Select one.

a. LinkedIn
b. Billboards
c. Radio commercials
d. Banners

Answers

Answer:

C

Explanation:

I think it is C because radio commercials seem WAY more convincing.

Let me know if it helps! :)

MAKE ME A KRABBY PATTY SO I CAN GIVE IT TO PLANKTON!!!

Which credit option carries the greatest loss if you are unable to recover it?



Answer: A $200 unregistered pre-paid card

Answers

The Financial Accounting Standards Board (FASB) issued the final

current expected credit loss (CECL) standard on June 16, 2016. The

new guidance particularly impacted community financial institutions

by modifying or replacing existing impairment models for financial

assets, such as trade receivables, loans, debt securities, and purchased

credit-deteriorated assets. This guide is meant to serve as a practical

and illustrative document to assist with implementation efforts.

So the answer is put it on my debt.

The credit option that would lead to you having the greatest loss if you don't recover it is A $200 unregistered pre-paid card.

Why would an unregistered prepaid card causes losses?

A prepaid card is one that you load money into before you use it. When this is unregistered, it means that certain details have not yet been provided.

Unregistered prepaid cards can cause losses because there are less protections by the issuer if it is stolen or lost. This is why it is important to register your cards when you acquire them.

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Which of the following statments about government regulation of business is true?

A. Small businesses often feel the burden of regulations more than large corporations

B. It is easy for large corporations to comply with most government regulations

C. It is easy for small businesses to comply with most government regulations

D. Large corporations often feel the burden of regulations more than small businesses ​

Answers

Answer:

small business often feel the burden of regulations more than large corporations

Explanation:

Since they have less money to spend on things like building permits and licensing fees, small business owners may find it more difficult as a result of federal rules, which can also lead to lost productivity and fewer starting businesses.

Thus, Option A is correct.

What are a few unfavorable consequences of government regulations?

Ineffective laws may waste scarce resources, hinder innovation, growth, and job creation, undermine sustainable development, unintentionally injure the individuals they are meant to protect, and degrade public trust in our government.

Inefficiency and additional costs are encountered. Government regulation has a number of benefits, but there are also some drawbacks. Businesses typically incur more costs as a result of government regulation, which results in some operational inefficiencies.

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Offering a better warranty is an example of competing on:
a. product
b. service
c. price

Answers

i think the answer would be A

The firms competing over providing a better warranty of a product to their consumers demonstrate a competition on:

b). Service

'Service' is described as 'the practice of providing assistance to the consumers in terms of making their utilities.' The firms in an economy not only compete over providing better goods to the consumers but also in terms of offering comparatively effective and efficient services so that they prefer one over the other. In the given situation, a firm giving a superior warranty exemplifies greater assistance, leading the consumers to opt for it.

Hence, option b is the correct answer.

Learn more about 'service' here:

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Which represents the most accurate description of how credit cards differ from loads

Answers

Answer:

C

Explanation:

Loans are typically for something that will build your value. Credit cards are not.

The option B gives the accurate difference between a credit card and a loan. The credit card payments typically vary from month to month, while the loan payments remain the same as long as the interest rates remain the same.

What is a Credit Card?

A credit card is a form of borrowing and allows you to borrow up to the credit limit set for your card. Credit cards let you borrow money from a bank under the agreement that you'll repay it by your bill's due date or incur interest charges.

A credit card is a type of payment card in which charges are made against a line of credit instead of the account holder's cash deposits. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance.

Learn more about credit card here,

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The activities of people traveling to and staying in places outside their usual environments for not more than one consecutive year for leisure, business, and other purposes is called _____.

transportation
travel
tourism
hospitality

Answers

Answer:

Tourism is the right answer

Which diagram best represents these elements of the Word window?





Mark this and return

Answers

Answer:

Explanation:

Option B

Which statement describes a benefit of credit cards over debit cards

Answers

Answer:

A

Explanation:

Credit cards allow you to buy things even without the full funds.

Debit cards do not.

At Walt Disney World, guests staying at The Grand Floridian Resort and Spa find thick white terrycloth robes hanging in the cupboard when they arrive in the room. The cleaning staff do not just place washcloths in the bath area; they form the washcloths into animals and arrange them on the vanity ready for a photograph. At night, mints appear on the pillows and when the beds are made in the morning, any plush animals children have purchased or brought from home will be arranged in an entertaining formation on the finished bed. These examples suggest that Walt Disney Company is _______ __________. Group of answer choices team-oriented. outcome oriented. people-oriented. detail-oriented.

Answers

Answer:

Most likely detail oriented or less likey outcome oriented, but definitely not the others.

The case scenario of given extract of Walt Disney suggest a detail oriented group.

What do you mean by Detail Oriented Group?

Detailed oriented group or person is referred to a mental state or an ability or a skill set that include a complete & comprehensive detailed noting of work to be drafted and prefers a perfect order of work.

The detailed oriented group takes pleasure in reviewing all the data and facts, ensuring that everything is accurate, and connecting all the existing problems.

This group focuses on the full detailed order of activities shall be accounted for and the each event should be perfectly formed part of report.

Therefore, the different activities organizing in so much detail of Walt Disney World is covered under Detailed Oriented Group.

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Sarah’s marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At her very first meeting, she had the team write on the board their objectives within the marketing department, the business unit, and corporation, the characteristics they’d like their new product to have its role within the current marketing offerings, and the target market they would be targeting. This indicates that Sarah and her team were at the ___________ stage of the new product development process.

Answers

Answer: New-product strategy

Explanation:

Based on the information given in the question, Sarah and her team were at the new product strategy stage of the new product development process.

This is a strategy that is used to develop a new product. The strategy helps to answer questions such as who will benefit from the products, the goals of the company and other necessary details.

Which of the following is true about having a good credit score?

Answers

Answer:

option A

Explanation:

Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.

Answers

Answer:

Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.

Explanation:

To: Director Finance

From: Business Analyst

Subject: Cost recovery for dismantling

It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.

Your Kind approval is required for the process.

Which of the following database object hold data?
Reports
Tables
Forms
All of the above

Answers

Answer:reports

Explanation:

(03.02 LC)
Which of these might decrease the length of a mortgage loan?
Property taxes
O Insurance
O Amount owed
Collateral

Answers

Answer:

D.) Collateral

Explanation:

Tbh I'm not confident on this choice, but real estate basically is just a fancy term for property, for those who don't know. A collateral is a piece of property that can be sold by the lender to recover all or part of a loan if the borrower fails to repay. So with that being said, the only logical choice in my opinion would be D, or Collateral.

Collateral might decrease the length of a mortgage loan. As it minimises the risk for the mortgage loan.

What is mortgage loan?

Mortgage loan is the fund that is provided to the lender against the immovable assets or property, or collateral to the Borrower. The lender used to keep the assets until their loan is repaid by the person.

Thus, option C is correct.

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The circumference of a circular track is 154m. Finid the diameter of the track​

Answers

Answer:

Diameter = 49 meters.

Explanation:

Given the following data;

Circumference of circle = 154m

To find the diameter;

Method I.

Circumference of circle = πD

We know that π = 22/7

154 = 22/7 × D

Cross-multiplying, we have;

154 × 7 = 22D

Diameter, D = 1078/22

Diameter, D = 49 meters.

Method II.

Circumference of circle = 2πr

Substituting into the equation, we have;

154 = 2πr

We know that π = 22/7

154 = 2 × 22/7 × r

Cross-multiplying, we have;

154 × 7 = 44r

1078 = 44r

Radius, r = 1078/44

Radius = 24.5m

But diameter = radius * 2

Diameter = 24.5 * 2

Diameter = 49 meters.

Tim is 16 years old,a high school student, and lives with hi parents.He earned $5,200 and his part-time job. Select the best possible answer.(Only 1 answer)

Answers

Answer:

the second one

Explanation:

prettyu sure,

only can claim is tim parents and he has no other choice but to return the file tax return

Current tax laws allow Tim's parents to claim Tim as a dependent; Tim has the option to file a tax return

According to the IRS, Tim can be claimed as a dependent by his parents because:

He is their son He is a student who is younger than 23 He lives with his parents

He also has the option but not the obligation to file a tax return because his gross income is less than $12,200 as a dependent.

In conclusion, Tim can be claimed as a dependent by his parents but he does not have to file a tax return.

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1) Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $2.15, what is the current share price

Answers

Answer:

P0 = $60.23475 rounded off to $60.23

Explanation:

To calculate the market price of the stock today, we will use the two stage growth model of DDM. The two stage growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2))  /  (r - g2)] / (1+r)^n

Where,

D0 is the dividend today g1 is the short term growth rate g2 is the long term or constant growth r is the required rate of return on the stock

P0 = 2.15 * (1+0.30) / (1+0.11)  +  2.15 * (1+0.30)^2 / (1+0.11)^2  +  

2.15 * (1+0.30)^3 / (1+0.11)^3  +  [(2.15 * (1+0.30)^3 * (1+0.04)) / (0.11 - 0.04)] / (1+0.11)^3

P0 = $60.23475 rounded off to $60.23

If cash received from Mr. O.I.Felix is credited to Messrs Y.K. Grace and co, which kind of accounting error has occurred?​

Answers

Answer:

Error by commission

Explanation:

The two accounts in the question are receivables so that they are of the same class. Thus, crediting Messrs Y.K. Grace and co's account instead of Mr. O.I. Felix is an error by commission.

Error by commission is an error that do not require a suspense account to correct it because it does not affect the trial balance. To correct this error, debit Messrs Y.K. Grace and co's account by the same amount, then credit Mr. O.I. Felix's account by the said amount.

The most common type of two-year college is called a(n):
O A. trade college.
B. liberal arts college.
C. community college.
O D. apprenticeship college.

Answers

The answer is community college

Answer:

c.

Explanation:

just took the test

11. HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the future revenue from this investment project a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.

Answers

Answer:

a. is now lower than it was before, and so Hydro Grow is less likely to build the building.

Explanation:

The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.

How much does it cost to build a private school in Dubai?

Answers

Answer:

14 per cent

Explanation:

I make YT intros, does that count as graphic design? And can I put it on my resume?

Answers

I don't do a thing. I just sit, eat food and watch kdrama. Should I keep mine in my resume? but u can keep urs cause that's actually a work.

Answer:

- Yes, it's graphic design.

- Yes, because it's work.

Explanation:

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