Which of the following statements is false?

A) Adding more unrelated securities to a portfolio reduces unsystematic risk.
B) Changes in Federal Reserve policy have more effect on systematic risk than unsystematic risk.
C) Systematic risk will increase during a recession.
D) Market risk may be reduced through diversification.
E) Oil shocks affect market risk.


D

Business

You might also like to view...

The income summary account, after adjusting entries are posted, reflects the

a. beginning inventory amount. b. ending inventory amount. c. beginning and ending inventory amounts. d. cash income from business transactions.

Business

Which of the following is usually referred to as a full-blown test market?

A) an internal focus group B) a discussion group C) a country D) a city or a few cities E) a laboratory

Business

In a simple random sample, ________

A) every member of the population has a known and equal chance of selection B) the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview C) the researcher selects the easiest population members from which to obtain information D) the population is divided into mutually exclusive groups and random samples are drawn from each group E) the researcher finds and interviews a prescribed number of people in each of several categories

Business

Identify the type of managed-care health insurance plan where in-network care comes from a specified group of physicians and hospitals, patients can pay extra to get care from outside the network, and there generally is no gatekeeper.

A. Health reimbursement account B. Health maintenance organization C. Flexible spending account D. Preferred provider organization

Business