By Incrementally Adding Securities to a Portfolio

question 7

Multiple Choice

By incrementally adding securities to a portfolio

• A) you can reduce portfolio risk only if the new security is uncorrelated with the others in the portfolio.
• B) you raise portfolio risk since having more securities in a portfolio increases the likelihood that one of them will become worthless.
• C) you may reduce portfolio risk, even if new securities are not negatively correlated with others in the portfolio.
• D) you may eliminate all risk with about 15 different stocks in a portfolio.
• E) you reduce risk at an increasing rate.

Calculate the molarity of a solution and understand dilution principles.

Know common names and chemical formulas of compounds.

Explain the mathematical relationship between pH and hydrogen ion concentration.

Understand the role and properties of platinum in electrochemistry.

---

Definitions:

Evaluate

To judge or determine the significance, worth, or quality of something through careful examination and analysis.

Accounting Cycle

The series of steps followed by an organization to record financial transactions and prepare financial statements over a specific accounting period.

Depreciation

Systematically dividing the cost of a tangible asset across its life of utility.

Financial Statements

Papers detailing a business's financial status, comprising the income statement, balance sheet, and statement of cash flows.