Which of the Following Is Incorrect

question 79

Multiple Choice

Which of the following is incorrect?

• A) It is possible to combine assets that all move in the exact same fashion over time and gain the benefits of diversification.
• B) Adding long-term Treasury bonds to a stock portfolio will reduce the risk of the portfolio.
• C) The optimal portfolio is the one with the lowest amount of risk.
• D) All of the statements are correct.

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Definitions:

Mass Production

The manufacturing of large quantities of standardized products often using assembly lines or automated technology, which can lead to economies of scale.

Product Orientation

A business approach that focuses on improving and selling a product without prioritizing customer needs or market demands.

Consumer Orientation

A business approach that prioritizes identifying and satisfying the preferences, needs, and expectations of consumers.