Question: True or False? By using preferred stock as a long-term financing source, a company that experiences cash flow problems can easily suspend preferred dividend payments

True or False?

By using preferred stock as a long-term financing source, a company that experiences cash flow problems can easily suspend preferred dividend payments without affecting dividend payments to its common stockholders. #10

In a well-diversified portfolio with many carefully chosen securities, all risk will be diversified away, so that the portfolio standard deviation will be zero. #9

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