Which of the Following Statements Is CORRECT

question 3

Multiple Choice

Which of the following statements is CORRECT?

• A) A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks,regardless of how the stocks in the smaller portfolio are selected.
• B) Diversifiable risk can be reduced by forming a large portfolio,but normally even highly-diversified portfolios are subject to market (or systematic)risk.
• C) A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.
• D) A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.
• E) If you add enough randomly selected stocks to a portfolio,you can completely eliminate all of the market risk from the portfolio.

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Definitions:

Treatment

Medical care and management provided to a patient for the purpose of managing or curing a disease, disorder, or injury.

Problem Drinking

A pattern of alcohol consumption that causes health problems, distress, or difficulty in daily functioning.

Psychosocial Interventions

Treatments that focus on both psychological and social factors to help individuals with mental health issues or to prevent such problems.

Detoxification

The physiological or medicinal removal of toxic substances from a living organism, including the human body, which is mainly carried out by the liver.