Diversification of a Portfolio Leads To

question 24

Multiple Choice

Diversification of a portfolio leads to:

• A)a negative correlation between the investments.
• B)a lower mean of returns.
• C)a lower variance of returns.
• D)a higher standard deviation of returns.

Learn the significance of implementation intentions in turning goals into reality.

Grasp the two-factor theory of emotion and its application in everyday situations.

Understand the cognitive-appraisal theory of emotion and its role in emotional responses.

Recognize the importance of specifying when, where, and how to carry out intended behaviors.

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Definitions:

Accrued Expense

Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.

Salary Owed

The amount of money that an employer is required to pay to an employee for work performed, which has not yet been paid at the statement date.

Unearned Gym Memberships

Income received by a gym or fitness center from memberships that have been paid for but not yet fully utilized, considered a liability until the services are rendered.

Gym Memberships Revenue

Income received from customers for granting access and use of a gym's facilities.