The shares traded publicly in an efficient market are ________
A) generally positively affected by diversification, because of the reduction in risk
B) generally negatively affected by diversification, because of the increase in risk
C) generally not affected by diversification, unless greater returns are expected
D) generally negatively affected by diversification, because of the increase in the required rate of return
C
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A projective technique, in which respondents are presented with a list of words, one at a time, is called "word association."
Indicate whether the statement is true or false
Limited liability companies are unable to offer stock options or stock bonus incentives to their employees because ________
A) benefits such as these are too costly for these types of start-up companies B) extra profits are reinvested into the company, not into company stocks C) limited liability companies do not have shareholders or stock D) approval of stock benefits is difficult due to the number of members E) LLC members are limited to just U.S. residents