Which of the Following Statements Is Correct

question 61

Multiple Choice

Which of the following statements is correct?

• A) A single stock has a lot of diversifiable risk.
• B) A single stock has more market risk than a diversified portfolio of stocks.
• C) Bonds and stocks have a high correlation because they are both financial assets.
• D) None of the statements are correct.

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Definitions:

Strategic Choices

Decisions made by an organization that affect its ability to achieve objectives and gain competitive advantage.

Technological Factors

Elements related to innovations, advancements, or changes in technology that can impact businesses and societies.

Organization Design

involves structuring the organizational framework to effectively and efficiently achieve business goals and adapt to changes.

Environment Nature

The natural, physical, and biological aspects of an environment, including landscapes, water, plants, and animals, and their interrelationships.