Statement I

question 28

Multiple Choice

Statement I.There is no basis for saying that in the U.S.the rich are getting richer and the poor are getting poorer.
Statement II.The U.S.has one of the most equal distributions of income in the world.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Portfolio Diversification

Portfolio diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, and other categories.

Security Market Line

A line that represents the relationship between the expected return of a security and its systematic risk, illustrating the risk-return trade-off in the capital asset pricing model (CAPM).

Portfolio Weight

The proportion of a specific asset within an investment portfolio relative to the total asset value of the portfolio.