A stock has split 2 for 1. You get one additional share for each share you had before. After you get your additional shares, the price of the stock decreases by 50%.

a. True

b. False

Portfolio diversification eliminates

select one:

a. credit risk

b. systematic risk

c. unsystematic risk

d. All of these statements are true.

e. all investment risk.

Interest rate exists because

select one:

a. All statements are correct

b. The issuer may be downgraded by Moody's and/or Standard & Poor's

c. None of the statements are correct.

d. Prices of bonds will decrease as interest rates rise.

e. The issuer may not be able to make timely payments of principal and interest.