A Portfolio Consisting of Every Stock Traded on the New

question 66

Multiple Choice

A portfolio consisting of every stock traded on the New York Stock Exchange would have

• A)diversified away all risk.
• B)diversified away idiosyncratic risk.
• C)diversified away market risk.
• D)much more risk than a portfolio containing only a few stocks.

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Definitions:

Ethically

In a manner that follows accepted standards of moral behavior, often considered in the context of business practices.

Consequences

The results or effects that follow from specific actions or decisions.

Obligations

Duties or commitments that an individual or organization is bound to by law, contract, or moral responsibility.

Honesty

The quality of being truthful and transparent in actions, communications, and transactions.