____ Is a Portfolio Characteristic Which Leads to Reduced Risk

question 156

Multiple Choice

____ is a portfolio characteristic which leads to reduced risk with good return.

• A)Maturity
• B)Price-earnings ratio
• C)Diversification
• D)Stratification
• E)Duration

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Definitions:

Fair Value

An estimate of the market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Issue Price

The price at which new shares are offered to the public or bonds are sold, determined at the time of issue.

Stock Dividends Distributable

It represents the shares that are due to shareholders as a dividend but have not yet been distributed.