A Portfolio That Includes All the Stocks Listed on the New

question 9

Multiple Choice

A portfolio that includes all the stocks listed on the New York Stock Exchange would

• A)have a higher expected return than the expected return on any individual stock.
• B)face no idiosyncratic risk, only systematic risk.
• C)face no systematic risk, only idiosyncratic risk.
• D)face neither systematic nor idiosyncratic risk.

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Definitions:

Matrix

A substance or environment in which something develops; in biology, it often refers to the intercellular substance of a tissue.

Connective Tissue

Tissue that supports, connects, or separates different types of tissues and organs in the body, including blood, bone, and fat tissues.

Nerve

A bundle of fibers that transmits electrical impulses between the brain and the rest of the body, facilitating communication.

Spleen

An organ in the left upper abdomen that acts in blood filtration, red blood cell recycling, and immune system support.