As the Number of Stocks in a Portfolio Is Increased

question 13

Multiple Choice

As the number of stocks in a portfolio is increased,

• A)unique risk decreases and approaches zero.
• B)market risk decreases.
• C)unique risk decreases and becomes equal to market risk.
• D)total risk approaches zero.

Comprehend how leaders can influence organizational culture and employee motivation through their leadership approach.

Appreciate the importance of ethical considerations in leadership practices.

Acknowledge the role of entrepreneurial leadership within organizational growth and innovation.

Understand the significance of servant leadership in fostering collaborative and supportive work environments.

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Definitions:

Age

A measure of the amount of time an individual or entity has existed, typically expressed in years.

Fluid Intelligence

The capability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

Crystallized intelligence refers to the ability to use skills, knowledge, and experience, which tends to increase over a person's lifetime.

Fluid Intelligence

The capacity to reason quickly and think abstractly, enabling problem solving and the ability to adapt to novel situations.