As the Number of Stocks in a Portfolio Rises

question 71

Multiple Choice

As the number of stocks in a portfolio rises,

• A)both firm-specific risks and market risk fall.
• B)firm-specific risks fall;market risk does not.
• C)market risk falls;firm-specific risks do not.
• D)neither firm-specific risks nor market risk falls.

Analyze the relationship between price discrimination and firm's revenue and output.

Comprehend the broader economic implications of profit maximization and entrepreneurial activity.

Explain the necessity of differentiating consumer groups for price discrimination.

Understand the economic efficiency and diversity benefits in competitive markets.