0
Diversifying a portfolio of equity securities across sectors and markets will tend to?
Wiki User
∙ 12y ago
Diversifying a portfolio of equity securities across sectors and markets will tend to:
1. a. increase the required risk premium.
2. b. reduce the beta of the portfolio to zero.
3. c. reduce the standard deviation of the portfolio to zero.
4. d. eliminate the market risk.
5. e. reduce the firm-specific risk.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the purpose of OppenheimerFunds products?
Oppenheimer Funds are mutual funds that you can purchase to enhance your 401k or investment portfolio. They have a number of different fund products available that specialize in different sectors and configurations.
How many sectors in Karachi stock exchange?
There are currently 34 sectors in KARACHI STOCK EXCHANGE (KSE) such as CLOSED-END-MUTUAL FUNDS, MODARABAS,LEASING COMPANIES, INVESTMENT BANKS/COS./SECURITIES,COMMERCIAL BANKS, INSURANCE, TEXTILE SPINNING,TEXTILE WEAVING, TEXTILE COMPOSITE, WOOLEN,SYNTHETIC and RAYON, JUTE, SUGAR and ALLIED INDUSTRIES and many more. There are 654 Companies are listed under the above mentioned sectors and are traded in KARACHI STOCK EXCHANGE (KSE).
How many sectors in sensex and nifty?
how many sectors in bse
What is the importance of MIS in banking sectors?
What is the importance of MIS in banking sectors?"
What shares are suggestible for investment?
That is a very complex question as there are many different ways to value stocks. Basically a diversified portfolio of equity in around 20-30 companies will make a return close to market return so long as all the companies are in different industry sectors.
What are the 4 basic economic sectors?
Factor Markets, Households, Profuct markets, firms
An investor by investing in combinations of stocks develops a portfolio?
An investor develops a portfolio by investing in combinations of stocks with the intention of diversifying their investment and reducing risk. This portfolio is typically made up of different types of stocks, such as growth stocks, value stocks, and dividend stocks, as well as stocks from various industries and sectors. The allocation of stocks within the portfolio is based on the investor's risk tolerance, investment goals, and market conditions.
How do you earn money in stock markets?
Buy low and sell high baby! ************************** You can either invest in growth stocks and wait until they increase in value, or you can invest in stocks that pay the investor a dividend for each share of the company they are investing in. Most people diversify and allot a percentage of their portfolio to various sectors of the market.
What markets does General Motors serve?
GM serves three major markets. The three major markets are Consumer, Industrial, and Government. GM has positioned themselves in all sectors which is very good for profit potential and brand equity.
Why are policy makers more concerned about the financial market than other markets such as the automobile or computer markets?
A working financial market is essential for all other sectors of the economy to function.
What is a list of the stock sectors?
Here is a list of stock sectors used by Morningstar Business Services Consumer Goods Consumer Services Energy Financial Services Hardware Healthcare Industrial Materials Media Software Telecommunication Utilities Keeping stock sectors in mind is a good way to make sure you have a diverse portfolio of stocks.
What are the Objectives of financial markets?
The objectives of financial markets are to channel funds from savings sectors into investment sectors, with the least cost and inconvenience to investors. Tight regulation of this process is required in order to ensure that all parties - lenders, investors, products, companies, shareholders, etc - receive equitable treatment with respect to their financial transactions and interests.
Spreading out the risk is called?
In business it means having many investments among many different securities or sectors to reduce the risk of owning any single investment
What company is represented by the stock ticker FAIRX?
The ticker FAIRX is the Fairholme Fund. This fund invests in equities and fixed-income securities like corporate debt securities. It is a non-diversified fund so it shifts asset classes and sectors of the market as determined by their investment officers.
What is the purpose of OppenheimerFunds products?
Oppenheimer Funds are mutual funds that you can purchase to enhance your 401k or investment portfolio. They have a number of different fund products available that specialize in different sectors and configurations.
What are the major advantages and disadvantages of diversification?
The advantage of diversification is that it broadens your exposure to market swings. The principle is that one sector (or stock) may devalue, but not all sectors will devalue. In the long term, most sectors tend to experience growth, so the total portfolio value of a diversified account should gradually grow. The disadvantage of diversification is that a portfolio focused on a single sector or stock can have some super growth, naturally this comes with increased risk. Another disadvantage is that diversification can be difficult for small investors. (It doesn't need to be, but it can be.)
What is an investors chronicle?
The Investors Chronicle is a weekly magazine in the United Kingdom for private investors. The magazine publishes articles about global markets and sectors, and news on corporate actions such as takeovers and share issues.
