As Randomly Selected Securities Are Combined to Create a Portfolio

question 144

Multiple Choice

As randomly selected securities are combined to create a portfolio, the ___________ risk of the portfolio decreases until 10 to 20 securities are included. The portion of the risk eliminated is___________risk, while that remaining is ___________risk.

• A) total; diversifiable; nondiversifiable
• B) relevant; irrelevant; total
• C) diversifiable; nondiversifiable; total
• D) total; nondiversifiable; diversifiable

---

Definitions:

Gestalt

A psychological approach focusing on perception and problem-solving that emphasizes understanding the whole context or pattern of an experience rather than its individual components.

Community Psychology

Area of psychology in which psychologists serve at various levels including individual, group, and community, focusing on promoting social welfare and preventing social problems.

Psychological Problems

Issues or disorders that affect an individual's mental health and well-being.

Planned Communities

Community developments with pre-set layouts and amenities, designed to meet specific living or commercial needs.