Which One of the Following Statements Is True

question 56

Multiple Choice

Which one of the following statements is true?

• A)Risk and return are inversely related.
• B)Investors are compensated only for diversifiable risk.
• C)The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.
• D)How a security affects the risk of a portfolio is less important than the actual risk of the security itself.
• E)Investing has two dimensions: risk and return.

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Definitions:

Exploitative Innovation

Exploitative Innovation involves leveraging existing knowledge and resources to improve or refine products, services, or processes.

Learning Organization

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying behavior to reflect new knowledge and insights.

Supervisory Training

Education or coaching geared towards equipping individuals with the knowledge and skills needed to oversee and guide a team effectively.

Top-Management Team

A group of high-ranking executives who are responsible for managing the overall operations and strategic direction of a company or organization.