Which One of the Following Would Indicate a Portfolio Is

question 112

Multiple Choice

Which one of the following would indicate a portfolio is being effectively diversified?

• A)an increase in the portfolio beta
• B)a decrease in the portfolio beta
• C)an increase in the portfolio rate of return
• D)an increase in the portfolio standard deviation
• E)a decrease in the portfolio standard deviation

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Definitions:

Functional Currency

The functional currency is the currency of the primary economic environment in which an entity operates and conducts its business transactions.

Balance Sheet Items

Components that make up a balance sheet, including assets, liabilities, and shareholders' equity.

Historic Rate

The exchange rate used to convert foreign currency transactions to the reporting currency at the date of the transaction, for accounting purposes.

Income Statement Items

Elements found in the income statement, including revenues, expenses, gains, and losses, which together determine the net income of a company.