Financial diversificationis a strategy of investing in a wide variety of securities in order to reduce risk.
Answer the following statement true (T) or false (F)
True
Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk. See 10-3: Investing in Financial Securities: What Are the Options?
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Which of the following can be defined as the tendency to overestimate the effect of a single factor on one’s life satisfaction?
A. planning fallacy B. Pygmalion effect C. horns effect D. focusing illusion
Some assets, such as a nuclear power plant, are not readily salable at the end of their useful lives, and retiring them may impose substantial costs. Which of the following is/are true?
a. Firms must estimate the fair value of the dismantling costs and include that amount in the initial measurement of the asset. b. Firms recognize a liability, referred to as an asset retirement obligation at the estimated fair value of the dismantling costs. c. Firms compute depreciation based on the combined cost of the plant assets, including the fair value of the dismantling obligations. d. all of the above e. none of the above
Which of the following is typically found on a sales invoice?
A) the unit price of each item B) the total of the extensions C) the terms of the sale D) all of the above
Explain to a client the significance of the income and principal categorization scheme used for fiduciary accounting purposes.
What will be an ideal response?