Ted Believes That He Currently Owns a Portfolio Which Is

question 221

Multiple Choice

Ted believes that he currently owns a portfolio which is adequately diversified. If he is correct, the addition of a _____ asset to the portfolio will have minimal, if any, effect on the portfolio's _____.

• A) risk-free; beta
• B) risk-free; rate of return
• C) risky; rate of return
• D) risky; beta
• E) risky; standard deviation

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Definitions:

Strange Situation

A standardized procedure in developmental psychology used to assess infants' attachment styles by observing their behavior in separations and reunions with their caregiver.

Cooperative Breeding

A social system in which individuals assist in the raising of offspring that are not their own, common in some animal species.

Biological Parents

The individuals who have contributed their genetic material to the creation of an offspring.

Strange Situation

A procedure developed by Ainsworth in the 1970s to assess attachment styles in young children through observations of their reactions when separated and reunited with their caregiver.