Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) In a well-diversified portfolio, unsystematic risk can be largely diversified away, leaving behind systematic.
• B) In a well-diversified portfolio, systematic risk can be largely diversified away, leaving behind unsystematic.
• C) In a well-diversified portfolio, both systematic and unsystematic risk can be largely diversified away.
• D) No matter how well diversified a portfolio is, unsystematic and systematic are always existent.

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Definitions:

Bearer Instrument

A negotiable financial instrument that entitles the holder or bearer to the rights stated on the document.

Truth-in-Savings Act

A U.S. federal law designed to promote the disclosure of account terms and fees to consumers, particularly regarding savings accounts and interest-earning bank accounts.

Information

A document, prepared by the prosecutor and presented to the magistrate, which demonstrates that there is enough evidence to charge the defendant and bring him or her to trial.

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.