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A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk The relevant risk a particular stock would contribute to?
A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk. The relevant risk a particular stock would contribute to a well-diversified portfolio is the stock.
Would you get the largest reduction in risk by spreading your portfolio across two stocks?
Your risk is reduced by investing in stocks with low correlation (prices do not move in sync). This is the basis of modern portfolio theory (look it up at investopedia).
What is role of portfolio manager?
Deciding the Best Investment plan for an individual by considering income ,age and capability to take risk. Risk diversification Efficient portfolio Asset Allocation Beta Estimation Rebalncing Portfolio Portfolio Revision Risk and Return Analysis of a security.
What type of risk is avoidable through proper diversification?
portfolio risk
Insurance works on the principle?
insurance works on the principle of indemnity, law of large numbers, principles of utmost faith etc.
A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk The relevant risk a particular stock would contribute to?
A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk. The relevant risk a particular stock would contribute to a well-diversified portfolio is the stock.
What are the basic principles of life insurance?
There are, in fact, a wide variety of "basic" principles of life insurance. Some of these principles include risk management, risk pooling, and human life value.
Would you get the largest reduction in risk by spreading your portfolio across two stocks?
Your risk is reduced by investing in stocks with low correlation (prices do not move in sync). This is the basis of modern portfolio theory (look it up at investopedia).
What has the author George E Rejda written?
George E. Rejda has written: 'Principles of risk management and insurance' -- subject(s): Risk management, Risk (Insurance), Insurance 'Social insurance and economic security' -- subject(s): Social security, Economic security 'Ins 22 Course Guide' 'Principles of insurance' -- subject(s): Insurance
When combining two securities into a portfolio risk reduction will be greatest when the two securities are?
When combining two securities into a portfolio, risk reduction will be greatest when the two securities are negatively correlated. This means that when one security's price decreases, the other security's price tends to increase, providing a natural hedge against market fluctuations. Additionally, having low correlation between the securities can also help in reducing overall portfolio risk by diversifying the sources of returns.
Explain under what situation the risk of the portfolio can be reduced while maintaining the same level of expected return?
With the use of insurance on whatever part of the portfolio is invested in the stock market.
Which one of the following is not one of the four risk managemant principles?
To accurately determine which option is not one of the four risk management principles, I would need the specific options to choose from. However, the four commonly recognized principles of risk management typically include risk avoidance, risk reduction, risk sharing, and risk retention. If you provide the options, I can help identify the one that does not belong.
What is insurance and principles of insurance?
Insurance is the concept that it is better to pool together uncertain risk and spread risk among many in order to better protect against uncertainty.It is vastly easier to budget for limited loss by mathematical probability that an event will occur to a limited number of people and spreading that risk than it is to prepare for unlimited risk to occur to one person.There are seven basic principles of insurance, which include subrogation, insurable interest, contribution and utmost good faith; in addition to indemnity, nearest cause, and minimization of loss. These principles are meant to safeguard insurance contracts.
Does business insurance raise my premium?
Business insurance is based on two principles: one is your risk and history in the industry, and two is history and risk of your company. If these two items are compromised then your premium will be raised.
Which one if the following is not one of the four risk management principles?
To accurately answer your question, I would need to know the specific options you are considering. However, generally speaking, the four common risk management principles are risk avoidance, risk reduction, risk sharing, and risk retention. Any option that falls outside these categories would be the correct answer to which one is not a risk management principle.
What is a dominant portfolio?
Dominant Portfolio is part of the efficient frontier in modern porfolio theory. If a portfolio has a higher expected return than another portfolio with the same level of risk, a lower level of expected risk than another portfolio with equal expected return or a higher expected return and lower expected risk than the the portfolio is dominant.
What is role of portfolio manager?
Deciding the Best Investment plan for an individual by considering income ,age and capability to take risk. Risk diversification Efficient portfolio Asset Allocation Beta Estimation Rebalncing Portfolio Portfolio Revision Risk and Return Analysis of a security.
