Ask Question
BusinessBusiness
3 October, 10:33

Which of the following statements is FALSE? A. Asset-specific risks can be easily diversified with highly correlated assets in a portfolioB. Asset-specific risks can be easily diversified with numerous assets in a portfolioC. Bearing risk is rewarded with higher expected returnsD. Only market-wide risks, not asset-specific risks, should earn rewards

+5
Answers (2)
  1. 3 October, 10:54
    0
    D. Only market-wide risks, not asset-specific risks, should earn rewards

    Explanation:

    Assets are investments that people do in order to see their money grow, there are high risks and low risk investments, for example you can invest in government bonds, and they will pay a low fee but you will never loose your money, while you could have portfolios of money invested in companies and you could loose money there, from the options the one that is incorrect is the last one D. Only market-wide risks, not asset-specific risks, should earn rewards, because all investments should earn rewards.
  2. 3 October, 13:09
    0
    The false statement is letter "D": Only market-wide risks, not asset-specific risks, should earn rewards.

    Explanation:

    The difference between choosing market-wide risks and asset-specific risks lays in the number of securities the investor decides to trade with. The latter reduces the risk by selecting a reduced number of assets. This is also called unsystematic risk. However, in both cases, the investors may profit from their trades according to their strategy.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following statements is FALSE? A. Asset-specific risks can be easily diversified with highly correlated assets in a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Recently, the price of gasoline dropped to just under $3.50/gallon. Economic analysts currently are focusing on questions concerning the likely impacts of this price decrease on the demand for gasoline.
Answers (1)
In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. what is the labor productivity of this operation? a. 90 chairs/worker/day b. 20 chairs/worker/day c.
Answers (1)
At BCD car wash, when a customer arrives, he or she first checks in with a receptionist and then leaves the car to one of several car washers. While the customer is waiting for the car to be washed, he or she proceeds to pay at the cash register.
Answers (1)
Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials $ 47,000 Work in process $ 20,000 Estimated total manufacturing overhead
Answers (1)
Property rights assure people that A. international trade will be limited. B. the government will provide a minimum standard of living. C. the government will not confiscate their income or savings. D.
Answers (2)
New Questions in Business
On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated interest rate of 8 percent. when the bonds were issued, the market interest rate was 8 percent.
Answers (1)
What is strategy implementation what questions must strategy makers consider to begin the imlimentation process?
Answers (1)
Suppose that due to a poor economy, 1 million workers lost their jobs, causing the unemployment rate to increase to 10%. After a few months of searching, 300,000 of these unemployed workers give up looking for work.
Answers (1)
Which of the following statements is true about skill-based pay? A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C.
Answers (1)
What does SMART stand for in terms of Business Aims and objectives
Answers (1)
Home » Business » Which of the following statements is FALSE? A. Asset-specific risks can be easily diversified with highly correlated assets in a portfolioB. Asset-specific risks can be easily diversified with numerous assets in a portfolioC.
Sign Up Forgot Password?