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Risk associated with a portfolio is always less than the weighted average of risks of individual items in the portfolio due to diversification of risks. This means that the risk is spread out as all individual items in a portfolio will not behave in unidirectional manner or the risks in all the individual items in a portfolio will not materialize simultaneously. The market Beta of each item is also different and therefore, the market risk associated with each is also different thereby reducing the overall impact on a well diversified portfolio.
A company has two machines: Machine A and Machine B. Machine A was bought for 75,000, and Machine B for 50,000. If the value of Machine A depreciates by...
If A is a 3 × 3 matrix such that det (2A) = 64, then det A=?
What is the % increase in the total number of shoes sold by Seller 'C' over the four days compared to the total number sold by Se...
Akash marked a bag of chips at Rs.240 higher than its cost price. He sold it after applying two successive discounts of 10% and 2...
A container has 80 liters of a mixture of milk and water, with 60% milk. If 10 liters of water are added, what will be the new percentage of milk in th...
From a point 30 m away from the base of a building, the angle of elevation to the top of the building is 60°. Find the height of the building.
The average of 5 numbers is 42. When one of the numbers is excluded, the average of the remaining four numbers becomes 38. Determ...
In a general survey of 832 people, it was found that 624 owned a car. If a person is selected randomly, what is the probability that the person will not...
The time taken by Boat 'X' to travel a distance of '2a' km upstream is the same as the time it takes to travel '3a' km downstream. Similarly, the time t...