What are some benefits of a portfolio that is internationally diversified?
What will be an ideal response?
Answer: With international stocks, the investor can diversify away U.S.-specific sources of volatility (e.g. U.S.-specific business cycle movements, changes in U.S. monetary policy, changes in U.S. interest rates, etc.). Technically, the variance of an equally weighted portfolio converges to the average covariance between these stocks when the number of stocks gets very large. The average covariance among U.S. stocks is higher than the average covariance among a set of U.S. and international stocks.
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Which statement best describes an authentic leader?
a. a type of leader who creates an image of the organization in the future that provides direction for setting goals and developing strategic plans b. a type of leader that inspires loyalty, enthusiasm, and high levels of performance c. a type of leader who brings about continuous learning, innovation, and change d. a type of leader who develops open, honest, trusting relationships
Katrina’s organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers. Adopting a(n) ______ organizational philosophy on compensation could allow her to hire plenty of workers.
A. wage compression B. below-market C. pay for longevity D. skill-based pay
Explain the four broad categories of coping, and give an example of each.
What will be an ideal response?
Capital structure may be defined as
A) a collection of securities assembled by an investor. B) a schedule of projects that have positive NPVs. C) the use of bank loans by a firm. D) the mix of debt and equity. E) another term for the investment opportunities' schedule.