Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A) The dollar return is a more useful measure to compare performance because it more accurately reflects the change in wealth of the investor.
• B) A dominant portfolio is one that has the highest risk and highest return within a set of portfolios.
• C) By adding stocks to your portfolio, it is possible to effectively eliminate nearly all of the market risk.
• D) None of these choices are correct.

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Definitions:

Remote Event

An occurrence that has a very low probability of happening, often considered insignificant in decision-making processes due to its unlikely nature.

Condition Precedent

A clause in a contract that requires certain conditions to be met before the contract or parts of it becomes enforceable.

Condition Subsequent

A condition in a contract or agreement that, if it occurs, terminates the contract or agreement or changes the parties' obligations under it.

Incidental Damages

Collateral damages that result from a breach of contract, including all reasonable expenses that are incurred because of the breach; damages that compensate a person injured by a breach of contract for reasonable costs he incurs in an attempt to avoid further loss.