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Author Question: A company that has an unpredictable cash flow, and is holding cash because of things that might ... (Read 218 times)

karen

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  • Posts: 537
on: Jul 10, 2018
A company that has an unpredictable cash flow, and is holding cash because of things that might
  happen due to this uncertainty, is holding a larger minimum cash balance due to which type of
  motive?
 
  A) common sense B) precautionary C) transaction D) speculative

Question 2

Answer the following two questions. Assume that the portfolio weights are positive:
 
  (1 ) Can the return on a portfolio ever be less than the smallest return on an individual security in the portfolio?
  (2 ) Can the risk (variance) of a portfolio ever be less than the smallest risk (variance) of an individual security in the portfolio?
  A) No. Yes.
  B) No. No.
  C) Yes. No.
  D) Yes. Yes.


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Galvarado142

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Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

A


karen

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  • Posts: 537
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

aliotak

  • Member
  • Posts: 326
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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