Diversification refers to the _____.
A. reduction of the stand-alone risk of an individual investment, which is measured by its beta coefficient, by combining it with other investments in a portfolio
B. reduction of the stand-alone risk of an individual investment, which is measured by the standard deviation of its returns, by combining it with other investments in a portfolio
C. reduction of the systematic risk of an individual investment, which is measured by its beta coefficient, by combining it with other investments in a portfolio
D. reduction of the systematic risk of an individual investment, which is measured by the standard deviation of its returns, by combining it with other investments in a portfolio
E. reduction of the unsystematic risk of an individual investment, which is measured by its beta coefficient, by combining it with other investments in a portfolio
Answer: B
You might also like to view...
Inventory management identifies an economic order quantity that minimizes the costs of ordering inventory
Indicate whether the statement is true or false
Which one of the following statements is true?
a. Accountants have developed methods which make assumptions concerning how costs should be assigned to inventory and cost of goods sold. b. Alternative inventory cost flow assumptions have the same effect on the amount of net income reported. c. Accounting standards require that merchandise costs be specifically traced to units left in inventory and to units that have been sold. d. The flow of inventory costs should match the physical flow of the merchandise.
Today, the standards of marketing practice have shifted from the interests of producers to the interests of ________.
A. nonprofit organizations B. government C. consumers D. suppliers E. resellers
How did Coke get better numbers in the test market?
a. It seasonalized the numbers b. It altered the numbers c. A marketing consultant used the Boys and Girls Clubs to get customers into Burger King to buy Frozen Coke value meals d. Its own employees bought Frozen Coke value meals