Which of the Following Statements Is True in the Context

question 62

Multiple Choice

Which of the following statements is true in the context of diversification?

• A)As long as the return on different investments is not perfectly positively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• B)As long as the return on different investments is not perfectly negatively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• C)As long as the return on different investments is perfectly positively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• D)None of the listed options are correct.

Realize the role of HR in career planning and the positive outcomes for organizational concerns.

Differentiate among cognitive, behavioural, and environmental developmental strategies.

Understand different on-the-job and off-the-job training techniques and their applications.

Recognize the importance and components of career development actions individuals can take.

---

Definitions:

Cumulative Preferred

Refers to preferred stock where dividends that were not paid in the past must be paid out to preferred shareholders before dividends can be distributed to common shareholders.

Proposed Acquisition

A potential financial transaction where one company offers to purchase or merge with another entity.

Dividend Growth Model

A method for valuing a stock by assuming dividends grow at a constant rate indefinitely and calculating the present value of the forecasted dividends.

Annual Dividend

The yearly total amount of dividends a company distributes to its shareholders.