Question $47$ of $50$

Failure to diversify increases the risk of an investment portfolio. Why should an

investor not expect to earn extra returns from such a strategy?

Short$-$term strategies do not earn extra returns.

A person is not paid extra for bearing risk that can be avoided.

Long$-$term strategies do not earn extra returns.

A person is not paid extra for actions related to investment portfolios.Question $46$ of $50$

You are in charge of financial statement forecasting at your company. In $20$X$1,$ sales

were $$1,000$ and total administrative expenses were $$200.$ Of these administrative

expenses, $$150$ are variable costs and $$50$ are fixed costs. In $202,$ sales are

expected to increase to $$1,200.$ What is your forecast of total administrative

expenses for $202?$

$$200$

$$230$

$$210$

$$240$