Which of the Following Measures or Concepts Are Deliberately Used

question 44

Multiple Choice

Which of the following measures or concepts are deliberately used by modern portfolio theory?
I. beta
II. inter industry diversification
III. efficient frontier
IV. correlation

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

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual rate.

Long-Term Debt

Borrowings that are due for repayment in more than one year's time, used to finance a company's operations beyond its immediate needs.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Interest Income

Earnings generated from the lending of money or from deposit funds in interest-bearing accounts.