For a credit card, it charges 15% compounded monthly. Its effective annual rate is closet to:
A fund manager has $1,000,000 to invest for one year. She could choose one of the two following portfolios to invest : Portfolio 1 Quarterly 8.00%, Portfolio 2 Continuously 7.95%:
A. Portfolio 1 $82,432.
B. Portfolio 2 $82,746.
C. Portfolio 2 $83,287.
Which of the following is the advantage of diversification compared to investing in a single security?
A. It decreases the volatility of returns.
B. It increases the probability of high returns.
C. It increases the expected rate of return.
It decreases the volatility of returns.### It increases the probability of high returns.### It increases the expected rate of return.
Portfolio diversification is least likely to provide protection against losses:
A. when markets are operating normally.
B. when the portfolio securities have low return correlation.
C. during severe market turmoil.