The accounting rate of return method considers the time value of money

Which of the following is true of business confidence indices?

Question options: They show how sure actual managers are about future business growth. They indicate how businesses have been performing over the previous years. They show how confident customers are about the companies they do business with. They indicate general economic statistics over the previous years.

We can reduce volatility by investing in less than perfectly correlated assets through diversification because the expected return of a portfolio is the weighted average of the expected returns of its stocks, but the volatility of a portfolio ________

A) is higher than the weighted average volatility B) is independent of weights in the stocks C) is less than the weighted average volatility D) depends on the expected return