When adding a randomly chosen new stock to an existing portfolio, the higher (or more positive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk.
Answer the following statement true (T) or false (F)
True
You might also like to view...
To avoid a conviction in a criminal prosecution under the securities laws, there must be at least a reasonable doubt that the defendant knew he or she was acting wrongfully.
Answer the following statement true (T) or false (F)
Perhaps the most intuitive relationship between two metric variables is a linear relationship, sometimes called a straight-line relationship
Indicate whether the statement is true or false
Cutter Company, a distiller of liquors, ages its whiskeys for approximately 10 years. The firm must pay the costs to produce the whiskey and to store it during the aging process. Using the whiskey as collateral, Cutter could borrow to finance the costs incurred during the aging process; doing so would, however, lead to Cutter reporting increased liabilities. Instead, Cutter sells the whiskey to a
bank and agrees to oversee the aging process on the bank's behalf. At the completion of the aging, Cutter assists the bank in finding a buyer but is not responsible for ensuring that a sale occurs at a specific price, or at all. Under this arrangement, the bank bears the risk of changes in selling prices for the whiskey. Cutter will probably treat this transaction as a(n) a. executory contract, with no incremental debt on the balance sheet. b. financing arrangement, with incremental debt on the balance sheet. c. financing arrangement, with no incremental debt on the balance sheet. d. sale, with no incremental debt on the balance sheet. e. sale, with incremental debt on the balance sheet.
When specialized journals are used, the general journal is not necessary
Indicate whether the statement is true or false