The Total Risk of the S&P 500 Index Is Equal

question 62

Multiple Choice

The total risk of the S&P 500 Index is equal to

• A) diversifiable risk.
• B) nondiversifiable risk.
• C) modern portfolio risk.
• D) efficient frontier risk.

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Definitions:

Lien

A legal right or interest that a creditor has in the debtor's property, generally lasting until the debt that it secures is satisfied.

Land

The surface of the earth, extending downward to the center and upward indefinitely into space, inclusive of natural resources and fixtures.

Deed of Trust

A legal document in some states that transfers the title of real property to a trustee as security for a loan until the grantor repays the lender.

Third Party

An individual or group besides the two primarily involved in a situation or contract, often with a lesser direct interest.