Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A)If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.
• B)If you formed a portfolio that consisted of all stocks with betas less than 1.0, which is about half of all stocks, the portfolio would itself have a beta coefficient that is equal to the weighted average beta of the stocks in the portfolio, and that portfolio would have less risk than a portfolio that consisted of all stocks in the market.
• C)Market risk can be eliminated by forming a large portfolio, and if some Treasury bonds are held in the portfolio, the portfolio can be made to be completely riskless.
• D)A portfolio that consists of all stocks in the market would have a required return that is equal to the riskless rate.

Discern the circumstances under which a partnership is liable for individual partners' actions outside the scope of partnership business.

Recognize the impact of personal liabilities and actions of partners on the partnership and other partners.

Understand the legal criteria for establishing a partnership relationship and the implications of managerial roles within it.

Identify conditions under which a partnership can be terminated and the effect of such termination on partner's liabilities and claims.

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Definitions:

Educated Audiences

Groups of individuals who are knowledgeable or have a significant understanding of a particular subject matter.

Disagrees With Position

The act of not sharing the same opinion, view, or stance as someone else on a particular issue or topic.

Resources

Assets or materials that can be drawn upon by an individual or organization to function effectively and achieve goals.

Social Proof

Social proof is a psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation, often used in marketing and persuasion strategies.