Which of the Following Statements Is CORRECT

question 92

Multiple Choice

Which of the following statements is CORRECT?

• A) If the returns on two stocks are perfectly positively correlated and these stocks have identical standard deviations,an equally weighted portfolio of the two stocks will have a standard deviation that is less than that of the individual stocks.
• B) A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5,assuming that the stock's beta was correctly calculated and is stable.
• C) If a stock has a negative beta,its expected return must be negative.
• D) A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.
• E) According to the CAPM,stocks with higher standard deviations of returns must also have higher expected returns.

Recognize the psychological impact of societal norms on gender and sexual identity.

Identify factors contributing to gender differences in mental health and behavior.

Understand the differences and similarities in how men and women experience and perceive friendships.

Comprehend gender differences in communication styles and preferences.

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Definitions:

Temporary Differences

Differences between the tax basis of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in the future.

Permanent Differences

Differences between taxable income and accounting income that arise due to items recognized in one manner for accounting purposes and in another manner for tax purposes, and they do not reverse over time.

Permanent Differences

Differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting the effective tax rate.

Temporary Differences

Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.