Which of the following statements about diversification is incorrect?
A) Risk-bearing financial institutions employ diversification.
B) Diversification reduces risk.
C) Mutual funds typically have a diversified portfolio.
D) Diversification requires that all investments have the same risk/return characteristics.
D
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Marcus works on an assembly line for a U.S. automobile manufacturer. He would be considered a(n) ______ of this system.
A. participant B. feedback mechanism C. input D. transformation process E. output
Two common forms of database coding are:
A) data mining and cluster customer analysis B) lifetime value analysis and customer cluster analysis C) lifetime value analysis and data mining D) geocoding and data mining
The proper sequence for the steps in the accounting cycle is a follows
A) analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries,
Which of the following statements is true regarding horizontal analysis?
A) It can only be used with balance sheet accounts. B) It can only be used with income statement accounts. C) It expresses each financial statement line item as a percent of the largest amount on the statement. D) It expresses each financial statement line item as a percent of the earliest year amount.