Which of the Following Statements Is True

question 69

Multiple Choice

Which of the following statements is true?

• A)The fundamental lesson of modern portfolio theory (MPT) is that by taking advantage of its profitability, an FI can diversify considerable amounts of credit risk as long as the returns on different assets are imperfectly correlated.
• B)The fundamental lesson of modern portfolio theory (MPT) is that by taking advantage of its size, an FI can diversify considerable amounts of credit risk as long as the returns on different assets are imperfectly correlated.
• C)The fundamental lesson of modern portfolio theory (MPT) is that by taking advantage of its profitability, an FI can diversify considerable amounts of credit risk as long as the returns on different assets are perfectly correlated.
• D)The fundamental lesson of modern portfolio theory (MPT) is that by taking advantage of its profitability, an FI can diversify considerable amounts of credit risk as long as the returns on different assets are imperfectly correlated

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Definitions:

CT

Computerized Tomography, a medical imaging technique that combines multiple X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Stent-graft

A tube composed of fabric supported by a metal mesh, used to repair damaged or diseased blood vessels.

Balloon Angioplasty

A medical procedure to open narrowed or blocked blood vessels of the heart using a balloon catheter.

Thrombolysis

The breakdown of blood clots by pharmacological means, often used in treating certain types of strokes and heart attacks.