Purchase Solution

Financial Management

Not what you're looking for?

Ask Custom Question

According to portfolio theory, people should hold more than one asset (or investment) in their portfolios. The idea is that if some investments do poorly, other investments in the portfolio can compensate for the poor investments. Some experts claim, however, that not all people in a society follow this prescription. In other words, not everyone will diversify and, in fact, many hold only one single asset or investment. For this assignment you are to briefly address each of the following:

Is such a claim true or false? Explain.

Who, or what group(s), if any at all, might not want to spread his/her risks and diversify? Why or why not?

Purchase this Solution
Solution Summary

The response addresses the queries posted in 387 words with references.

Solution Preview

The response addresses the queries posted in 387 words with references.

//In the present times, every rational investor wants more return with less risk. For achieving this purpose, the investors spread their risk by using diversify security portfolio. But some investors do not believe on this approach. So, we will discuss about which group of investor do not believe on this approach.//

Every investor has its own investment policy. Some investors are risk lover and some investors want to take risk and earn more. The risk diversification is very good policy. If one security is not performing well, the ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Financial management

    161065 What is financial management? What is financial management? What is financial management? Financial management is the art and science of managing money.

  • Health Care Financial Management

    70998 Health Care Financial Management Financial management is based on three disciplines: financial accounting, managerial accounting, and managerial finance. Explain how the three disciplines fit into the overall financial management function.

  • Corporate Finance Relevance

    THE ISSUES SHOULD BE RELATED TO FINANCIAL MANAGEMENT OF BUSINESS. Swamy, M. R. K. (2009). Financial Management Call For New Approach To Ethical-Based Financial Statement Analysis. Journal of Financial Management & Analysis, 22(2), 70-84.

  • Characteristics as to accounting

    285548 Define characteristics as to financial accounting, management accounting, or neither See attached file for clarity. Management accounting differs from financial accounting in many ways.

  • performance in proper financial management

    into performance in proper financial management.

  • The Financial Management

    What is the relationship between accounting and financial management? Management Accounting and Financial Management both deal with preparation and analysis of financial data. However, some aspects of these two related fields are different.

  • Goals of Financial Management: Valuing Earnings and Maximizing Shareholder Wealth

    229109 Goals of Financial Management: Valuing Earnings and Maximizing Shareholder Wealth Describe the goals of financial management.

  • Applying Financial Concepts to Real Life Situations

    We take financial management decisions in our daily life on a daily basis. For example, all families prepare a monthly budget of their estimated expenses. This is a perfect example of financial management.

  • Evaluation of a Current Trend in Financial Management

    an evaluation of a current trend in financial management.

  • Role of financial management in public services organization

    397885 Role of financial management in public services organization What role does financial managment play in public services organizations? What role does financial management play in public services organizations?

View More Related Solutions