Which of the Following Is Incorrect

question 3

Multiple Choice

Which of the following is incorrect?

• A) It is possible to combine assets that all move in the exact same fashion over time and gain the benefits of diversification.
• B) Adding long-term Treasury bonds to a stock portfolio will reduce the risk of the portfolio.
• C) The optimal portfolio provides the highest return for the investor's desired risk.
• D) All of these choices are correct.

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time, with the payer named on the document.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, including sales of goods and secured transactions.

Mobile Devices

Portable computing gadgets, such as smartphones and tablets, that allow users to access, process, and manage information on the go.

UCC Article 4

A section of the Uniform Commercial Code that deals with bank deposits and collections, outlining the rights and liabilities of banks and their customers.