Portfolio a Has but One Security, While Portfolio B Has

question 25

True/False

Portfolio A has but one security, while Portfolio B has 100 securities. Because of diversification, we know that Portfolio B will have the lower market risk; that is, Portfolio B will have the lower beta.

---

Definitions:

Insomnia Disorder

A common sleep disorder that can make it hard to fall asleep, hard to stay asleep, or cause you to wake up too early and not be able to get back to sleep.

Physiological Effects

The physical responses or changes in the body resulting from various factors or stimuli, such as exercise, stress, or medication.

Depressive Disorders

A category of mood disorders that cause persistent feelings of sadness and loss of interest, impacting daily functioning.

Major Depressive Disorder

A serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in most activities.