Portfolio a Has but One Stock, While Portfolio B Consists

question 124

True/False

Portfolio A has but one stock, while Portfolio B consists of all stocks that trade in the market, each held in proportion to its market value.Because of its diversification, Portfolio B will by definition be riskless.

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Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Newborn Infant

An infant who is within the first hours to a few weeks of life, characterized by rapid development and adaptation to the external world.

Habituation

The process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Babble

The sounds, speech, or nonsense talk uttered by infants as they begin to experiment with vocalizations.