Which Statement About Portfolio Diversification Is Correct

question 7

Multiple Choice

Which statement about portfolio diversification is correct?

• A) Proper diversification can reduce or eliminate systematic risk.
• B) The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual securities have been purchased.
• C) Because diversification reduces a portfolio's total risk,it necessarily reduces the portfolio's expected return.
• D) Typically,as more securities are added to a portfolio,total risk would be expected to decrease at a decreasing rate.
• E) None of these statements are correct.

Understand the implications of job design on employee tasks, training needs, and task identity.

Recognize the importance of competencies, task significance, and autonomy in job design and employee motivation.

Grasp the concept of job families and the impact of environmental factors on job design.

Understand the concept of price elasticity and its effect on sales volume and net operating income.

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Definitions:

Revenue Journal

A specialized accounting journal used to record all sales transactions of a business, tracking the inflow of revenue.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct period.

Special Journal

A specialized accounting journal designated for the recording of specific types of transactions, such as sales or purchases, to increase efficiency and organization.

General Journal

A primary accounting record used for recording all types of financial transactions, providing a chronological record of all business activities.