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2 years ago

Diversification is important in investing because...

2 answers:

8 0

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

san4es73 [151]2 years ago

6 0

Diversification is important in investing because the risk associated with the investment is lower.

Further Explanation:

Diversification is the strategy of investing in the market at a lower risk. In this strategy, the company, individual and corporation invest their savings in a different industry. So, the risk for the overall investment becomes lower. If the investor puts all of his savings in one industry and if that industry goes into depression, the whole saving of the investor has become futile. But the investor invests some of his money in two different industries and maybe one goes in depression then the loss occurred can be compensated by the profit from the other industry.

Types of diversification:

Industry diversification: In this type of diversification, the investor invests in the different industries of the market.
Assets diversification: In this type of diversification, the investor invests in different instruments and assets of the company. For example, treasury bills, and mutual funds.
Geographic diversification: In this type of diversification, the investor invests in a different location. For example, home country investment and foreign country investment.
Individual company diversification: In this type of diversification, the investor invests in a different company at his particular needs.

Learn more:

1. Learn more about diversification

brainly.com/question/2480636

2. Learn more about investment

brainly.com/question/5959656

3. Learn more about risk-free rate

brainly.com/question/7268541

Answer details:

Grade: Middle School

Subject: International business

Chapter: Diversification

Keywords: diversification, investing, because, the risk associated, lower risk, strategy, individual, compensate by profit, industry, assets, geographic.

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ANTONII [103]

Resources is referred to as the available asset that can be used for further purposes may it be for business or consumption. This is what determines the balance between the production and consumption for without these, production would not be possible and if nothing is produced, nothing would also be consumed. Resources come in different forms and each has its own availability. Answer for this would be C.

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2 years ago

Outsourcing strategies: Select one: a. Carry the substantial risk of raising a company’s costs. b. Carry the substantial risk of

Simora [160]

Answer:

The correct answer is letter "C": Involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.

Explanation:

Outsourcing refers to a practice that companies engage in to take their operations abroad to lower production costs and avoid being subject to stiff regulations that might harm their profits. Under this approach, firms value chain activities handled in their original country are taken to countries where the manufacturing and labor costs are much lower with and relatively similar qualified workforce and suppliers.

Outsourcing might harm the employment rate in the domestic country of the company handling operations abroad but could benefit the outsourced nation by introducing job opportunities where there may not even be basic labor conditions.

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2 years ago

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Dmitriy789 [7]

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2 years ago

Read 2 more answers

Happinessistheroad Corp. has the following information available regarding its labor: Managers expected to pay $11 per direct la

777dan777 [17]

Answer:

The actual labor rate per hour is $12

Explanation:

First and foremost, we need to understand that a direct labor spending variance of $990(unfavorable) means that the firm spent an additional $990 compared to what was expected.

Also, the spending variance is computed as the actual labor rate minus the standard labor rate multiplied by the actual labor hours worked

spending variance=(actual labor rate-standard labor rate)*actual labor hours

spending variance=$990

actual labor rate=unknown=(assume it is X)

standard labor rate=$11

actual labor hours worked=990

$990=(X-$11)*990

$990/990=X-$11

$1=X-$11

X=$1+$11

X=actual labor rate=$12

8 0

1 year ago

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15

Maslowich

Answer:

the actual direct deposit payroll is $12,843

Explanation:

The computation of the actual direct deposit payroll is shown below;

= Total salary - withholdings

= (15 × 40 × $30) - Federal income tax - state income tax - FICA tax

= $18,000 - ($18,000 × 0.15) - ($18,000 × 0.06) - ($18,000 × 7.65%)

= $12,843

Hence, the actual direct deposit payroll is $12,843

Basically we applied the above formula

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2 years ago