Statements about diversification

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Reference no: EM131354751

1. If a bond's yield to maturity is larger than the bond's coupon rate, then the bond’s price…

A. is selling at a discount.

B. is priced at par.

C. has reached its maturity date.

D. is selling at a premium.

2. Which of the following statements about diversification is incorrect?

A) Mutual funds typically have a diversified portfolio.

B) Diversification reduces risk.

C) Risk-bearing financial institutions employ diversification.

D) Diversification requires that all investments have the same risk/return characteristics

Reference no: EM131354751

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