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Author Question: Which explanation below is most appropriate in explaining why diversification can reduce investment ... (Read 15 times)

ssal

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on: Jul 11, 2018
Which explanation below is most appropriate in explaining why diversification can reduce investment risk?
 
  A)
 
  The greater the number of assets held, the greater the portfolio return.
  B)
 
  The greater the risk taken, the greater the portfolio return.
  C)
 
  Asset returns are often poorly correlated.
  D)
 
  Asset returns tend to be stable over time.

Question 2

Which of the following statements concerning flexible spending accounts is false?
 
  A)
 
  They are also known as cafeteria plans.
  B)
 
  Unspent funds may be held over for subsequent years.
  C)
 
  Employees may voluntarily contribute pretax dollars to this account.
  D)
 
  Expenditures from the account are subject to IRS restrictions.


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diana chang

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Reply #1 on: Jul 11, 2018
Answer to Question 1

C

Answer to Question 2

B


ssal

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)

Mochi

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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