Investors Can Avoid Unsystematic Risk by

question 63

Multiple Choice

Investors can avoid unsystematic risk by

• A)using the capital asset pricing model.
• B)investing in stocks with low PE ratios.
• C)holding diversified portfolios.
• D)using the free cash flow model.

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Definitions:

Accounts Receivable

Unpaid amounts due to a company from its clients for delivered or utilized goods or services awaiting payment.

Land

It refers to the earth's surface extending downward to the center and upward to infinity, including permanently attached natural objects, and is considered a non-depreciable asset in accounting.

Journalizing

The process of recording transactions in the journal in chronological order, marking the first step in the accounting cycle.

Posting

The process of transferring journal entries to their respective accounts in the ledger.