Diversifying an investment portfolio may A. Increase taxes B. Reduce investment risk C. Increase borrowing D. Reduce sales Which ratio measures a firm's ability to inventory? A. Current Ratio B. Gross Profit Margin C. Quick Ratio D. Interest Coverage Ratio

Here are the answers to the multiple-choice questions:

9. Diversifying an investment portfolio aims to: B. Reduce investment risk Diversification involves spreading investments across various assets to minimize the impact of poor performance from any single investment, thereby reducing overall portfolio risk.

10. Which ratio measures a firm's ability to meet short-term obligations without relying on inventory? C. Quick Ratio The Quick Ratio (or Acid-Test Ratio) measures a company's ability to pay off its current liabilities using only its most liquid assets (cash, marketable securities, and accounts receivable), specifically excluding inventory, which may not be easily convertible to cash.