A Portfolio Comprised of Which One of the Following Is

question 74

Multiple Choice

A portfolio comprised of which one of the following is most apt to be the minimum variance portfolio?

• A)100% stocks
• B)100% bonds
• C)50/50 mix of stocks and bonds
• D)30% stocks and 70% bonds
• E)30% bonds and 70% stocks

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Definitions:

Inventory

The total amount of goods and materials held by a company intended for sale or production.

Gain on Bargain Purchase

The financial benefit that occurs when a company acquires another entity for a price below the fair value of its net assets.

Pre-acquisition Entries

Journal entries made to account for the assets and liabilities of a company before it is acquired by another entity.

Bonus Share Dividend

A reward to shareholders in the form of additional shares instead of cash, based on the number of shares already held, often issued from a company's accumulated reserves.