Which of the given statement is true.

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Chapter 2, Problem 7P

To determine

Which of the given statement is true.

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Which of the following statements is incorrect?(a) Holding on to cash is the most risk-free investment option.(b) To maximize your return on total assets (ignoring financial risk), you mustput all your money into the same type of investment category.(c) Diversification among well-chosen investments can reduce market volatility.(d) Broader diversification among well-chosen assets always leads to a higherreturn without increasing additional risk.

As an accountant, your job is to maintain your clients' accounting ledgers. Total Revenues ($) Total Costs ($) Wages and Salaries Risk-free return of 5% on owner's capital of $950,000 Interest on bank loan 850,000 650,000 47,500 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of on the owner's capital of $950,000 One client has submitted the above information to you, but the last line of the table is missing. You know that the firm is currently earning economic profits equal to -$66,000. Your answers should include only numbers. Do not include the $ or the comma (,) in your answer. In total, the firm's explicit costs are equal to $ The missing number that should go in the right column of the last row of the table (below the zero) is $ The firm is currently earning accounting profit equal to $| . Include the negative sign if applicable.

please solve （d) and (e), thank you.