Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, RJH, doubled in value. What should Zachary do if he wants to be as diversified as he was at the beginning of the year?
A) Sell some of the RJH because it now constitutes a higher percentage of his holdings.
B) Sell the worst performing stock and use the proceeds to buy more RJH.
C) Wait for the price for RJH and the remaining stocks to rise so the proportions are reestablished.
D) Sell the RJH and buy a cheaper stock in the same industry.
Answer: A
You might also like to view...
The final step in variance analysis is taking appropriate corrective action
Indicate whether the statement is true or false
Which of the following lines of code is syntactically correct?
A. DECLARE order NUMBER; departure DATE; BEGIN ---- executable statements --- END B. DECLARE order NUMBER; departure DATE BEGIN ---- executable statements --- END C. DECLARE order NUMBER(2); departure DATE; BEGIN; ---- executable statements --- END D. DECLARE order NUMBER(3); departure DATE; BEGIN ---- executable statements --- END;
Acme Company's standard cost is $500,000. The allowable deviation is ±10%. Its actual costs for three months are January $520,000 February $550,000 March $575,000 The upper and lower control limits are, respectively,
A) $550,000 and $450,000 B) $500,000 and $450,000 C) $550,000 and $500,000 D) $575,000 and $520,000
The ________ is a compromise between the maximax and the maximin criterion
Fill in the blank with correct word.