The Relevant Risk for a Well-Diversified Portfolio Is

question 35

Multiple Choice

The relevant risk for a well-diversified portfolio is:

• A) interest rate risk.
• B) inflation risk.
• C) business risk.
• D) market risk.

---

Definitions:

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service.

Garbage Disposal

A device installed under a kitchen sink that shreds food waste into small pieces to pass through plumbing.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.