A company that has an unpredictable cash flow, and is holding ...

[karen]

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.

[Galvarado142]

Answer to Question 1

B

Answer to Question 2

A

[karen]

TYSM

[abro1885]

Excellent