Which of the Following Statements Best Describes What You Should

question 10

Multiple Choice

Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio?

• A) Adding more such stocks will reduce the portfolio's unsystematic,or diversifiable,risk.
• B) Adding more such stocks will increase the portfolio's expected rate of return.
• C) Adding more such stocks will reduce the portfolio's beta coefficient and thus its systematic risk.
• D) Adding more such stocks will have no effect on the portfolio's risk.
• E) Adding more such stocks will reduce the portfolio's market risk but not its unsystematic risk.

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Definitions:

British Interests

The economic, political, cultural, or military objectives and concerns of the United Kingdom abroad or within international contexts.

French Women

Refers to women from France, with specific context often highlighting their roles, rights, and experiences in various historical, cultural, or social frameworks.

Revolutionary Action

Activities aimed at fundamentally changing the social, economic, or political structure of a society, often through force or protest.

New Calendar

The term "New Calendar" commonly refers to the Gregorian calendar, introduced by Pope Gregory XIII in 1582 to correct inaccuracies in the Julian calendar and better align with the solar year.