Which of the Following Is a TRUE Statement of Modern

question 3

Multiple Choice

Which of the following is a TRUE statement of modern portfolio theory?

• A)It states that securities should be managed within a portfolio, rather than individually, to lower risk-reduction gains.
• B)It stipulates that investors should diversify their investments so as to be unnecessarily exposed to a single negative event.
• C)It shows how to form portfolios with the highest possible expected rate of return for any given level of risk.
• D)It demonstrates that by combining securities into portfolios, we can increase risk.

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Definitions:

View

In computing, refers to the method of displaying or arranging the content on a screen, often customizable by the user.

Worksheet

A single page in a spreadsheet application where users can organize, calculate, and visualize data.

Pages

Refers to individual sheets or documents within a software application, often used in word processors and web browsers.

Best Fit

A method of finding the most appropriate solution or model that closely matches a set of data points or requirements.