Which One of the Following Would Indicate a Portfolio Is

question 121

Multiple Choice

Which one of the following would indicate a portfolio is being effectively diversified?

• A) an increase in the portfolio beta
• B) a decrease in the portfolio beta
• C) an increase in the portfolio rate of return
• D) an increase in the portfolio standard deviation
• E) a decrease in the portfolio standard deviation

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Definitions:

Ending Inventory

The total value of all inventory that a company has on hand at the end of its fiscal year, including goods ready for sale and those still in the production process.

Amortization

Amortization refers to the process of gradually reducing the value of an intangible asset or a loan over a specified period of time.

Unrealized Profits

Refers to the potential profit from an investment that has not yet been sold or cashed in, thus not recorded in the financial statements as actual gain.

Going Concern

An accounting principle assuming that an entity will remain in business for the foreseeable future, allowing it to carry out its operations and commitments.