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:

Certification Elections

Elections conducted to determine the labor union that will represent a group of employees in bargaining with their employer.

Certified

Having official recognition or guaranteed conformance to specified standards, often through the completion of a testing or evaluation process.

Authorization Cards

Documents signed by employees to indicate their wish to be represented by a union in dealings with their employer.

Card-Check

A method used in labor relations where employees can form a union by signing cards stating they wish to be represented, bypassing a secret ballot election.