If Your Portfolio Consists of 100 Shares of Facebook, 100

question 92

Multiple Choice

If your portfolio consists of 100 shares of Facebook, 100 shares of Twitter, and 100 shares of Google, which of the following statements would be true of your portfolio?

• A) It is well diversified by industry.
• B) It is well diversified by type of asset.
• C) It has poor diversification.
• D) It has more diversification than is necessary.

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Definitions:

Create Purchase Order

The process of generating a document to officially request goods or services from a supplier, outlining the types, quantities, and agreed prices for products or services.

Make Deposits

The process of adding funds to a bank account, often facilitated by banking or financial software.

Sales on Account

Transactions where goods or services are sold and payment is deferred to a later date, creating accounts receivable.

Create Invoices

The act of generating a document that specifies the amount owed by a customer for goods or services provided.