Diversifying

question 95

Multiple Choice

Diversifying

• A)increases the standard deviation of the value of a portfolio indicating its risk has increased.
• B)increases the standard deviation of the value of a portfolio indicating its risk has decreased.
• C)decreases the standard deviation of the value of a portfolio indicating its risk has increased.
• D)decreases the standard deviation of the value of a portfolio indicating its risk has decreased.

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Definitions:

Dissenting Shareholder Rights

Rights granted to shareholders who disagree with major corporate actions, like mergers, allowing them to receive payment for the fair value of their shares.

Merger Approval

The authorization granted by a regulatory body or shareholders for two or more companies to consolidate into one entity.

Block Merger

A strategy in business consolidation where two or more companies with similar operations merge to create a larger entity.

Target Corporation

A large retail corporation headquartered in the United States, known for offering a wide range of goods including clothing, electronics, and groceries.