Which of the Following Is Not Correct

question 46

Multiple Choice

Which of the following is not correct?

• A)A risk averse person might be willing to hold stocks.
• B)Other things the same,a portfolio with the stocks of a large number of companies has less risk.
• C)Other things the same,the larger a portion of savings a person invests in stocks,the greater his expected return.
• D)Diversification can eliminate market risk but not firm-specific risk.

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Definitions:

Equivalent Units

A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, labor, and overhead costs incurred.

FIFO Method

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "first-in, first-out."

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of equivalent completed units for inventory valuation.

Forming Department

A specific department in manufacturing where raw materials begin their transformation into final products through various processes.