Which One of the Following Indicates a Portfolio Is Being

question 83

Multiple Choice

Which one of the following indicates 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:

Net Income

The final earnings of a corporation once all costs, taxes, and expenses are subtracted from gross revenue.

Retained Earnings

Retained Earnings are the portion of a company's profits that are not distributed as dividends to shareholders but are instead reinvested in the business.

Loss Accounts

Financial accounts within a company's books that represent expenses exceeding incomes, leading to a net loss.