In a Portfolio,risk Is Evaluated in a Different Way Than

question 59

Multiple Choice

In a portfolio,risk is evaluated in a different way than with an individual project.In evaluating portfolio risk we:

• A) don't need to consider the impact of a given project on the overall risk of the firm.
• B) recognize that a risky investment will not create a portfolio with less risk.
• C) consider the risk of the project with the highest beta only.
• D) need to consider how the returns of the projects in the portfolio are correlated.

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Definitions:

Labor-Management Cooperation

A collaborative effort between employers and employees to improve working conditions, productivity, and the overall success of the organization.

U.S. Labor Law

A body of laws, regulations, and judicial decisions that address the legal rights of, and restrictions on, working people and their organizations in the United States.

ESOPs

Employee stock ownership plans, which are employee benefit plans giving workers ownership interest in the company.

Worker Representation

The participation of employees in decision-making processes and governance within an organization, often through unions or employee councils.