Which of the Following Reduces Risk in a Portfolio the Greatest

question 13

Multiple Choice

Which of the following reduces risk in a portfolio the greatest?

• A) Increasing the number of shares from 10 to 20
• B) All of these answers provide the same amount of risk reduction.
• C) Increasing the number of shares in the portfolio from 1 to 10
• D) Increasing the number of shares from 20 to 30

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Definitions:

Relevance

The degree to which something is related or useful to the matter at hand.

Polls

Surveys of public opinion from a particular sample, used to predict the outcome of elections or gather information on attitudes towards a topic.

Representative Sample

A sample that is similar to the larger population from which it was drawn.

Modus Ponens

A hypothetical syllogism in which the antecedent premise is affirmed by the consequent premise.