Which of the Following Statements Is True

question 65

Multiple Choice

Which of the following statements is true?

• A) A low risk portfolio is constructed by selecting low risk stocks.
• B) It is easy to find perfectly negatively correlated stocks.
• C) Low risk portfolios will only reflect unsystematic risk.
• D) Negatively correlated stocks help build a low risk portfolio.
• E) Market risk reduces as more stocks are added to a portfolio.

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Definitions:

Facts in Context

Presenting or understanding information or data within its relevant situation, environment, or circumstances to ensure accurate comprehension.

Organize Messages

The act of arranging or structuring communication in a clear and coherent manner to ensure effective conveyance of information.

Pattern

A repeated decorative design or a regular and intelligible form or sequence discernible in the way in which something happens or is done.

Confidential Communication

Information exchanged between parties with the expectation that it will not be disclosed to unauthorized individuals or entities.