Which of the Following Is Most Likely to Occur as You

question 79

Multiple Choice

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio,which currently consists of 3 average stocks?

• A) The diversifiable risk of your portfolio will likely decline,but the expected market risk should not change.
• B) The expected return of your portfolio is likely to decline.
• C) The diversifiable risk will remain the same,but the market risk will likely decline.
• D) Both the diversifiable risk and the market risk of your portfolio are likely to decline.
• E) The total risk of your portfolio should decline,and as a result,the expected rate of return on the portfolio should also decline.

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Definitions:

Ethical Relationships

Relations governed by moral principles, ensuring fairness, honesty, and respect among all parties involved.

Legal Relationships

Legal relationships refer to the formally defined connections between parties as governed by the laws and regulations of a particular jurisdiction, often pertaining to obligations, rights, and contracts.

Marketing Decisions

Choices made by a company related to the promotion, price, distribution, and product strategies to maximize business objectives.

Ethical Relationships

Interactions between individuals or entities that are grounded in practices of fairness, integrity, and respect for moral principles.