Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?

• A)A dominant portfolio has the best risk-return relationship as compared to other portfolios.
• B)It is not necessarily true that when an investment achieves a high return that it is risky.
• C)A low standard deviation means that the investment is less likely to achieve high returns; which means that it is more risky.
• D)None of these statements are correct.

Understand the concept of equivalence in logical arguments and how it can be used to infer conclusions.

Identify the use of disjunction in logical arguments and its implications for the conclusion.

Infer the use of conditional statements in constructing logical arguments.

Apply logical reasoning to identify the validity of arguments involving complex compound statements.

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Definitions:

Journal Entries

The method by which financial transactions are recorded in an accounting system, involving a debit to one or more accounts and a credit to one or more accounts.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies; often evidenced by ownership of 20% to 50% of the voting shares of the investee.

Fair Value

The revenue generated from selling an asset or the charge for relocating a liability in a formal trade between market counterparts at the appraisal time.

Journal Entries

Records that note the details of financial transactions in accounting, following the double-entry bookkeeping method.