Which One of the Following Statements Is True

question 56

Multiple Choice

Which one of the following statements is true?

• A)Risk and return are inversely related.
• B)Investors are compensated only for diversifiable risk.
• C)The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.
• D)How a security affects the risk of a portfolio is less important than the actual risk of the security itself.
• E)Investing has two dimensions: risk and return.

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Definitions:

Critical Path

In project management, the sequence of stages determining the minimum time to complete a project.

Critical Path

The longest sequence of activities in a project plan that must be completed on time for the project to finish by its due date, determining the shortest project duration.

Project Organization

An organization formed to ensure that programs (projects) receive the proper management and attention.

Functional Areas

Specific domains or categories within a business or organization that focus on particular tasks or responsibilities, such as marketing, finance, human resources, etc.