Systematic Risk Is Reduced to Zero as the Number of Different

question 156

True/False

Systematic risk is reduced to zero as the number of different stocks in a portfolio increases.

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Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations, often expressed as a percentage.

Histogram

A graphical representation of the distribution of numerical data, displayed as bars representing the frequency of data within certain ranges.

Histogram

A graphical representation of the distribution of numerical data, showing the number of data points that fall within each of a series of specified ranges.

Histogram

A graphical display of data using bars of different heights, where each bar groups numbers into ranges and taller bars show that more data falls in that range.