Other Things the Same,as the Number of Stocks in a Portfolio

question 116

Multiple Choice

Other things the same,as the number of stocks in a portfolio rises,

• A)risk increases and the standard deviation of the return rises.
• B)risk increases and the standard deviation of the return falls.
• C)risk decreases and the standard deviation of the return rises.
• D)risk decreases and the standard deviation of the return falls.

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Definitions:

Neural Messages

Neural messages are electrochemical signals transmitted along neurons, enabling communication within the nervous system.

Polarization

A process in which differences between opinions, beliefs, or interests become more extreme, leading to division within groups or societies.

Botulism Toxin

A potent neurotoxin produced by the bacterium Clostridium botulinum, which can cause a serious paralytic illness known as botulism.

Acetylcholine

A neurotransmitter involved in many functions including muscle movement and memory.