Diversification Is Investing in a Variety of Assets with Which

question 14

Multiple Choice

Diversification is investing in a variety of assets with which one of the following as the primary goal?

• A) increasing returns
• B) minimizing taxes
• C) reducing some risks
• D) eliminating all risks
• E) increasing the variance

Understand the scope and applicability of AASB 2 Share-based Payment.

Identify the recognition and measurement principles for share-based payment transactions.

Analyze vesting conditions and their impact on share-based payment transactions.

Compute the fair value of share options and understand the factors affecting fair value measurement.

---

Definitions:

OPEC

The Organization of Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations, aiming to manage the supply of oil in an effort to set the price on the world market.

Cost-Push Inflation

Inflation caused by increased costs of production, such as higher prices for raw materials or wages, leading to higher final product prices.

Underemployment

Workers are overqualified for their jobs or work fewer hours than they would prefer.

Seasonal Unemployment

Unemployment due to seasonal variations in demand or supply of labor, common in industries like agriculture and tourism.