Marcus Puts a Greater Proportion of His Portfolio into Government

question 56

Multiple Choice

Marcus puts a greater proportion of his portfolio into government bonds. Marcus's action

• A)increases both risk and the average rate of return.
• B)decreases both risk and the average rate of return.
• C)increases risk, but decreases the average rate of return.
• D)decreases risk, but increases the average rate of return.

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Definitions:

Revocable

Capable of being revoked, withdrawn, or cancelled, often referring to trusts, licenses, or permissions.

Effective Delivery

The successful transfer of a document or item to its intended recipient in a manner that meets legal or contractual obligations.

Gratuitous Assignment

The transfer of rights or property from one party to another without any exchange of value or consideration.

Assignee's Assent

The agreement or acceptance by the assignee to accept the terms and conditions of an assignment.