Which statement is incorrect about portfolios and single stocks.

• Single stocks are not necessary to provide higher returns than portfolios.
• Single stocks always provide better returns because they are riskier.
• Usually portfolios have better risk return tradeoff than single stocks.
• Investors should hold portfolios instead of one single stock in their retirement accounts.

Which cost is not incremental for making new project investment decisions?

• The fee you paid for marking research about the projected sales
• The impact of the new project on existing sales
• Change in tax liability due to the new project
• New tools you have to purchase to start the new project