Which of the Following Statements Are Correct Concerning Diversifiable,or Unsystematic,risks

question 40

Multiple Choice

Which of the following statements are correct concerning diversifiable,or unsystematic,risks?
i.Diversifiable risks can be largely eliminated by investing in 50 unrelated securities.II.There is no reward for accepting diversifiable risks.III.Diversifiable risks are generally associated with an individual firm or industry.IV.Beta measures diversifiable risk.

• A) I and III only
• B) II and IV only
• C) I and IV only
• D) I,II,and III only
• E) I,II,III,and IV

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Definitions:

Journal Entries

The method of recording financial transactions in an accounting system, where each transaction is entered twice to maintain the balance of the accounting equation.

Transactions

The events or interactions between businesses or individuals that have economic substance and can be measured in terms of money.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to ensure the accounting entries are in balance.

T-Accounts

A visual representation used in accounting to show the debits and credits in separate columns for each account in the general ledger.