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.

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Definitions:

Rewarding Individual

Someone who finds fulfillment and satisfaction in their actions or achievements.

Team Performance

The level of efficiency, productivity, and quality of output produced by a group of individuals working together towards common goals.

Supervisory Responsibilities

Duties and tasks associated with overseeing and guiding the work of other employees or team members.

Positive Energy

A beneficial force or influence, characterized by optimism, enthusiasm, and vitality.