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The main advantage of diversification as an investment policy is that it?
Wiki User
∙ 12y ago
Reduces risks to investors
Wiki User
∙ 12y ago
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What is the main goal of both fiscal and monetary policy?
The main goal of both fiscal and monetary policy is to stabilize the economy.
Advantages or importance of multiplier effect?
Concept of multiplier is important form the theoretical as well as practical point of view. For this reason, the importance of multiplier in business and economic sector. The importance of the multiplier can be explained as follows: 1. Importance in investment Multiplier theory has taken investment as the important factor of the economy. The proportionate increase in the level of income and employment in the economy depends up on the multiplier. This clarifies that increase in income and employment is on the basis of increase in investment. 2. Analysis of trade cycle It is easier to analyses trade cycle on the basis of multiplier. Multiplier helps in estimating the increase in income as a result of increase in investment. So, multiplier will be of great importance in formulating progressive policies to bring the effects in the economy to right speed. 3. Formulation of economic policy The main objective of every economic policy is to create the situation of full employment in the economic. Therefore policy makers will formulate their country's economic policy using the multiplier. This will help in creating the situation of full employment. 4. Public investment Public investment is of great importance specially in the situation of depression and unemployment, because this does not stress much on profits. Multiplier indicates the importance of public investment in increasing the level of employment. 5. Equality between saving and investment The equality between saving and investment can be brought about with the help of multiplier. Increase in investment increases the income. Increase in income will bring about equality in saving and investment.
What is the main purpose of laissez faire policy?
To do nothing.
A basic position in American foreign policy has been that America must defend its foreign interest related to trade security the main foreign policy position oppose this American policy is?
A basic position in American foreign policy has been that America must defend its foreign interest related to trade and security; the main foreign policy position opposing this American policy is militarism.
Which are three of the four main economic variables?
external shocks business investment, and interest rates
What is the main purpose of diversification?
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.
What are the benefits of portfolio investment?
It reduces the risk of uncorrelated assets. So by combing assets that are distinctive from each other it reduces the overall risk.Answer:The biggest benefit of portfolio investment is that it spreads your investment across different types of financial instrument, each with a different risk-return potential. The main reason for this type of diversification is to reduce overall risk that comes from putting all your money in just one type of investment. Many people rely on professional portfolio management services to maximize gains on their investments.
What is the main advantage of it?
You are not specific enough. The main advantage of what? It does not make any sense.
Why is there diversification taking place in the economies of North Africa?
Diversification is taking place in the economies of North Africa because if one main crop fails, there needs to be others so the whole economy doesn't fail.
The main advantage of ECL over TTL?
The main advantage of ECL over TTL is speed.
State the main advantage of storing documents in a hierarchy?
main advantage of storing documents in a hierarchy
What is the main advantage of reproduction?
there is no real advantage. you just have sex.
What are the main advantages of a laptop?
Portability is the main advantage.
What is the main role of an investment agency?
The main role of an investment agency is to assist companies with business expansions. It can offer advice and information regarding international investments.
What is the main business of the Contango Group?
The main business of the Contango Group is an investment company. They are located in Sydney, Australia. This company encourages foreign investment in Australia.
What is one of the main types of policy?
Presidents have a domestic policy and a foreign policy.
What is one of the main types of policy's?
Presidents have a domestic policy and a foreign policy.
