Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A)The dollar return is a more useful measure to compare performance because it more accurately reflects the change in wealth of the investor.
• B)A dominant portfolio is one that has the highest risk and highest return within a set of portfolios.
• C)By adding stocks to your portfolio, it is possible to effectively eliminate nearly all of the market risk.
• D)None of these statements is correct.

---

Definitions:

Corn Producers

Individuals or entities engaged in the cultivation and sale of corn.

Supply Curve

The supply curve is a graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing to supply, typically showing an upward slope, indicating that higher prices incentivize more supply.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied, typically upwards sloping, indicating higher quantities supplied at higher prices.

Prices Rise

An economic condition where the cost of goods and services increases over time, affecting purchasing power.