Which of the Following Statements Is Most Correct

question 29

Multiple Choice

Which of the following statements is most correct?

• A) It is possible to have a situation where the market risk of a single stock is less than the market risk of a portfolio of stocks.
• B) The market risk premium will increase if, on average, market participants become more risk averse.
• C) If you selected a group of stocks whose returns are perfectly positively correlated, then you could end up with a portfolio for which none of the unsystematic risk is diversified away.
• D) Statements a and b are correct.
• E) All of the statements above are correct.

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Definitions:

Implied-Contract Exception

An exception to the employment at-will doctrine which provides that an implied employment contract may arise from statements the employer makes in an employment handbook or materials advertising the position.

Wrongful Discharge

The unjust termination of an employee's contract of employment in violation of legal or contractual terms.

Progressive Discipline Policy

A system of discipline where the penalties increase upon repeat occurrences of misconduct.

Written Warning

A documented notice of violation or misconduct, typically given by an employer to an employee as part of disciplinary procedures.