Which Statement Is Not Correct

question 18

Multiple Choice

Which statement is not correct?

• A)A loss is incurred when expenses > income.
• B)A profit is earned when income < expenses.
• C)A loss is incurred when income < expenses.
• D)A profit is earned when income > expenses.

Identify diversifiable (unsystematic) and non-diversifiable (systematic) risks.

Explain the concept of the market risk premium and its role in investment decisions.

Analyze the impact of news announcements on stock prices and investor reactions.

Understand the principles of diversification and its effects on portfolio risk.

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Definitions:

Adapting Changes

The process of modifying behaviors, processes, or strategies in response to internal or external shifts in the environment.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Internal Locus

The belief that one controls their own life and outcomes, rather than external forces.

External Locus

The belief that one's life events are largely influenced by external forces or the environment rather than personal actions.