As we add more diverse securities to a portfolio, the ________ risks of the portfolio will decrease.
A) total and systematic
B) systematic and unsystematic
C) total and unsystematic
D) unsystematic
E) systematic
C) total and unsystematic
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An important characteristic of an appropriate reward is one that the person administering the reward enjoys giving
Indicate whether the statement is true or false.
Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible.
Answer the following statement true (T) or false (F)
The last step in the financial planning process is to:
A. develop financial plans and strategies to achieve goals. B. use financial statements to evaluate results of plans and budgets, taking corrective action as required. C. implement financial plans and strategies. D. redefine goals and revise plans and strategies as personal circumstances change. E. periodically develop and implement budgets to monitor and control progress toward goals.
Creating a budget is an important part of which phase of the planning and control process?
A. Planning B. Controlling C. Executing D. Implementing