Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A) An investor can eliminate virtually all market risk if he or she holds a large and well diversified portfolio of stocks.
• B) The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.
• C) It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.
• D) Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount.
• E) An investor can eliminate virtually all diversifiable risk if he or she holds a large, well diversified portfolio of stocks.

Analyze the impact of federal decisions on state authority, with an emphasis on the doctrine of nullification.

Assess the role of federalism in modern U.S. national security strategies.

Understand the steps and components involved in sensory processing.

Comprehend the concept and examples of transduction in sensory systems.

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Definitions:

Negligence

A medical professional’s failure to perform an essential action or performance of an improper action that directly results in the harm of a patient.

Breach of Contract

A legal term describing a violation of the terms of a contract without lawful excuse, which may result in legal consequences.

Direct Cause

An immediate factor or event that directly leads to an outcome or effect.

Respondeat Superior

A legal doctrine holding that an employer is responsible for the actions of employees performed within the course of their employment.