​A Diversified Portfolio

question 26

Multiple Choice

​A diversified portfolio

• A) ​increases systematic risk
• B) ​reduces systematic risk
• C) ​increases unsystematic risk
• D) ​reduces unsystematic risk

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Definitions:

Sales Taxes Payable

This account reflects the amount of sales tax collected from customers by a company on behalf of state and local governments, which is to be remitted to those governments.

Remittance

The process of sending payment from one party to another, often from a buyer to a seller or from an employer to an employee.

Liability

An entity's financial obligation or debt, incurred during business operations, that it is obligated to pay to another entity.

Interest Expense

The total charges faced by a business for financing through borrowed money over a duration.