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NEW QUESTION: 1
By investing in a diversified portfolio, an investor will:
A. lower his risk and increase his expected return.
B. lower his risk without affecting his expected return.
C. eliminate all the market risk associated with his investment portfolio.
D. lower both his risk and his expected return.
Answer: B
Explanation:
By investing in a diversified portfolio, an investor will lower his risk without affecting his
expected return. In diversifying, he selects securities whose returns do not move together. This does not
affect the expected returns of the individual securities and, by extension, his portfolio of securities. When
he does so, he is diversifying away the unsystematic (non-market) risk associated with the individual
securities. Market risk is the risk that all firms face to one degree or another and cannot be diversified
away.
NEW QUESTION: 2
A. Option C
B. Option A
C. Option B
D. Option D
Answer: B
NEW QUESTION: 3
Which information is contained in production versions for selecting routings and bills of material?
A. The routing and BOM alternatives to be used for production
B. The explosion date on which the validity of the routing and bill of material is checked
C. The plant for which the routing and BOM have to be created
D. All the control parameters for selecting routings and bills of material
Answer: A
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