Which of the Following Statements Is Most Correct

question 40

Multiple Choice

Which of the following statements is most correct?

• A) If the returns from two stocks are perfectly positively correlated and the two stocks have equal variance, an equally weighted portfolio of the two stocks will have a variance which is less than that of the individual stocks.
• B) If a stock has a negative beta, its expected return must be negative.
• C) According to the CAPM, stocks with higher standard deviations of returns will have higher expected returns.
• D) A portfolio with a large number of randomly selected stocks will have less market risk than a single stock which has a beta equal to 0.5.
• E) None of the statements above is correct.

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Definitions:

Motivation

An inner drive or incentive that compels individuals to act or behave in a certain way towards the attainment of a goal or objective.

Therapeutic Relationship

The professional and collaborative relationship between a therapist and a client, which is foundational to the healing process in therapy.

MI

Motivational Interviewing, a counseling approach that helps individuals find the motivation to make positive decisions and accomplish established goals.

Expressing Empathy

The ability to understand and share the feelings of another person, often used as a therapeutic technique.