Which One of the Following Would Indicate a Portfolio Is

question 121

Multiple Choice

Which one of the following would indicate a portfolio is being effectively diversified?

• A) an increase in the portfolio beta
• B) a decrease in the portfolio beta
• C) an increase in the portfolio rate of return
• D) an increase in the portfolio standard deviation
• E) a decrease in the portfolio standard deviation

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Definitions:

Profit Centre Managers

Individuals responsible for overseeing profit centres, areas within a business that are directly responsible for generating revenue exceeding their operating costs.

Pricing

The process of determining what a company will receive in exchange for its products or services.

Operations

entails the daily activities, processes, and functions carried out in running a business, particularly related to production of goods or services.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the gain from the investment by its cost.