Sardine Airlines Inc. will be announcing their quarterly earnings tomorrow. The consensus estimate of their earnings is $1.25 per share. Last year at this time, their quarterly earnings were $0.75 per share. If they announce earnings tomorrow of $1.10 per share, absent any other news, what would the price of the stock be expected to do?

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Which of the following is/are True about Diversification?

I. A portfolio of stocks must have a minimum of 50 different stocks to be considered diversified, even if the underlying companies are all in the same industry

II. Diversification can virtually eliminate Systematic Risk

III. Diversification can virtually eliminate Unsystematic Risk

IV. Diversification can reduce a portfolio's overall level of risk without a corresponding reduction in the portfolio's expected return.

Only III and IV are True

Only II and III are True

All are True

Only I, II, and III are True

Only I, III, and IV are True

Answer rating: 100% (QA)

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