Which of the Following Statements Is Most Correct

question 61

Multiple Choice

Which of the following statements is most correct?

• A) If you add enough randomly selected stocks to a portfolio, you can completely eliminate all the market risk from the portfolio.
• B) If you formed a portfolio which included a large number of low beta stocks (stocks with betas less than 1.0 but greater than -1.0), the portfolio would itself have a beta coefficient that is equal to the weighted average beta of the stocks in the portfolio, so the portfolio would have a relatively low degree of risk.
• C) If you were restricted to investing in publicly traded common stocks, yet you wanted to minimize the riskiness of your portfolio as measured by its beta, then, according to the CAPM theory, you should invest some of your money in each stock in the market, i.e., if there were 10,000 traded stocks in the world, the least risky portfolio would include some shares in each of them.
• D) Diversifiable risk can be eliminated by forming a large portfolio, but normally even highly diversified portfolios are subject to market risk.
• E) Statements b and d are correct.

Recognize the role of stress in psychological disorders, including its impact on depression, anxiety, and bipolar disorder.

Identify the influence of stress on pregnancy outcomes, including birth weight and developmental issues.

Analyze the causes and effects of stress on the immune system, incorporating knowledge of psychoneuroimmunology.

Examine the disparities in health outcomes related to stress among different ethnic and socioeconomic groups.

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Definitions:

Aptitude Test

A standardized test designed to measure an individual's potential to acquire specific skills or knowledge.

Ravens' Progressive Matrices

A nonverbal group test typically used to measure abstract reasoning and regarded as a test of fluid intelligence.

Background Knowledge

The information that is already known by an individual, which helps in understanding new information.

Predictive Validity

An assessment of whether a test measures what it’s intended to measure, based on whether the test score correlates with another relevant criterion measured later.