Which of the Following Is Not Correct

question 46

Multiple Choice

Which of the following is not correct?

• A)A risk averse person might be willing to hold stocks.
• B)Other things the same,a portfolio with the stocks of a large number of companies has less risk.
• C)Other things the same,the larger a portion of savings a person invests in stocks,the greater his expected return.
• D)Diversification can eliminate market risk but not firm-specific risk.

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Definitions:

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Underapplied Manufacturing Overhead

When the allocated manufacturing overhead cost is less than the actual overhead incurred.

Adjusted Cost of Goods Sold

The cost of goods sold figure that has been adjusted for any changes in inventory levels, ensuring it reflects the cost of goods actually sold during the period.