Which of the following is correct?
A. Diversification reduces common and independent risks.
B. Diversification is a way of spreading risk across investments, rather than actually reducing risk.
C. Diversification eliminates risk unique to a particular stock.
D. Diversification is not useful for the average investor
Which Of The Followings Is Correct Name Of Structure Pointed?
Which Of The Followings Is Correct Name Of Structure Pointed? A) Jugular Notch B) Xiphoidal Process C) Body Od Sternum D)…
Answer to question 1
The correct answer is (C.) Diversification eliminates risk unique to a particular stock.
The total risk of a security is composed of two parts: (1) unsystematic or unique risk and (2) systematic or market risk. The unique risk of a security is that which arises due to firm specific factors like labor strike, emergence of a new competitor, etc. In a diversified portfolio, unique risk of different securities tend to offset each other. Hence, unique risk can be eliminated by diversification.
- A. Diversification reduces common and independent risks. — The market risk of a security represents risk that arises due to economy wide factors like GDP growth, money supply, interest rate structure etc. Since these factors affect all the firms, they cannot be eliminated by diversification.Diversification does not reduce common and independent risks
- B. Diversification is a way of spreading risk across investments, rather than actually reducing risk. — Diversification actually reduces risk because each security carries a different degree of expected risk.
- D. Diversification is not useful for the average investor. — Diversification is useful to an average investor, since every investor tries to minimize the risk and maximize the return.
Answer to question 2
The structure pointed is the navicular bone.
The structure poimted is the Tibial tuberosity.
The structure pointed is the lesser trochanter.
Answer to question 3
Answer: A (jugular notch)
Sternum is made up of three bones.
- Body of sternum
- Xiphoid process
Answer: A (1st rib)
Curved flat bone.
Has head ,body,neck
It is the first rib of all 12 ribs
Answer: C ( Navicular bone)
Navicular bone is one of the tarsal bone.
It is located on medial side of the foot articulating proximally with tarsal bone and distally with cuneiform bones.
Answer: C ( tibial tuberosity)
Tibial tuberosity is an elevation on proximal part of anterior aspect of tibia
Answer: B ( lesser trochanter)
Lesser trochanter is a small elevation from the lower and back of the neck of the femur