Which of the Following Was Not a Result of the Sarbanes-Oxley

question 38

Multiple Choice

Which of the following was not a result of the Sarbanes-Oxley Act?

• A)The COO assumes financial statement responsibility.
• B)There are new requirements for CPA firms.
• C)There are stiffer consequences for white-collar crimes.
• D)Audit committees must be independent.

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Definitions:

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification in an investment portfolio.

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.