The Addition of a Risky Security to a Fully Diversified

question 79

Multiple Choice

The addition of a risky security to a fully diversified portfolio:

• A)must decrease the portfolio's expected return.
• B)must increase the portfolio beta.
• C)may or may not affect the portfolio beta.
• D)will increase the unsystematic risk of the portfolio.
• E)will have no effect on the portfolio beta or its expected return.

Comprehend the concept of positive discipline and its collaborative problem-solving approach.

Recognize the HR department's role in developing and enforcing disciplinary policies and procedures.

Understand employees' statutory and moral rights, including privacy and a safe workplace.

Grasp the significance of communication in effectively enforcing disciplinary rules.

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Definitions:

Selling Expenses

Costs incurred directly and indirectly in making sales, including advertising, commissions, and salaries of sales staff.

Human Resource Management

The strategic approach to the effective management of people in a company or organization in a way that helps their business gain a competitive advantage.

Sales Discounts

Sales discounts are reductions in price offered to customers, typically to encourage prompt payment or bulk purchases.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.