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:

Narragansett Sachem

A title for the chief of the Narragansett tribe, an indigenous group primarily located in areas of present-day Rhode Island.

English Colonization

The process by which England established and expanded its colonies primarily in North America and the Caribbean from the late 16th to early 18th centuries.

Mayflower Compact

An early agreement established in 1620 by the Pilgrims aboard the Mayflower to form a crude government and submit to the majority's rule.

House of Burgesses

The first legislative assembly of elected representatives in North America, established in the Colony of Virginia in 1619.