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:

Wendy's

An international fast-food restaurant chain known for its burgers, frosties, and distinctive social media presence.

General Motors

An American multinational corporation focused on designing, manufacturing, and selling cars, trucks, and automotive parts.

Spelling and Grammar

Refers to the set of conventions that govern the written language, including the correct arrangement of words and punctuation.

Writing Styles

The manner in which a writer chooses to express themselves, characterized by word choice, tone, and syntax.