Ask Question
BusinessBusiness
19 November, 10:15

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

+4
Answers (2)
  1. 19 November, 10:33
    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. 19 November, 10:45
    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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
For each hour of production, a certain factory requires 1 assembly line worker for every 25 units to be produced in that hour.
Answers (1)
A (n) is a written document that describes all the steps necessary for opening and operating a successful business
Answers (1)
You are a manager in an organization. You have employees complaining about not being paid a fair amount. For the next year, your budget is frozen, so you cannot give any pay raises. Which dimension of fairness can you focus on for maximum benefit? A.
Answers (1)
Which one of these statements is fasle? A. Ownership of common stock gives the owner a voting right. B. The stockholders' equity section begins with paid-in capital. C. The authorization of capital stock does not result in a formal accounting entry.
Answers (1)
X Company is preparing its IPO prospectus and is informed by its attorneys that the company needs to discuss the board's role in risk oversight ad enterprise risk management.
Answers (1)
New Questions in Business
Why are career clusters useful in a career search?
Answers (1)
Sumaira is scared that she will not find a job in the current economy. she decides to be a business major and attend one of the top business schools in the country. upon graduation, she is hired by a major investment banking firm in new york.
Answers (1)
Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact he would enjoy the flavor of the tiramisu the same amount every time, Josh only buys it when he would be the only one having dessert.
Answers (1)
A 1,500,000 SF plant employs 300 people and produces 177,000 LCD panel per month. The plant is idle, on average, 2 months each year for maintenance, repairs, and retooling.
Answers (1)
This year Aetna announced it was moving out of Hartford, Connecticut, where it had held it headquarters for over 100 years. The announcement sent shockwaves through an already economically challenged state.
Answers (2)
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?