Which of the Following Statements Is Correct

question 63

Multiple Choice

Which of the following statements is correct?

• A)A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio.
• B)A portfolio that consists of 40 stocks that are not highly correlated with the market will probably be less risky than a portfolio of 40 stocks that are highly correlated with the market, assuming the stocks all have the same standard deviations.
• C)A two-stock portfolio will always have a lower beta than a one-stock portfolio.
• D)If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.

Understand how to construct a merchandise purchases budget and its relevance in budgeting.

Prepare basic budget statements, including the income statement, cash budget, and balance sheet.

Calculate direct labor and raw materials requirements for a production budget.

Understand the sales budget and its role in forecasting cash receipts.

---

Definitions:

Heat-Resistant Tiles

Materials designed to protect surfaces or structures from damage by high temperatures, often used in aerospace applications.

Proximate Cause

A legal concept that links the defendant's conduct to the plaintiff's injury or loss, establishing causation for the purpose of attributing liability.

Due Care

The level of judgment, attentiveness, and caution reasonably expected from a person under particular circumstances.

Toxic Material

Toxic material refers to substances that can cause harm to living organisms through chemical reactions or other mechanisms when absorbed, ingested, inhaled, or come into contact with skin.