As the Number of Stocks in a Portfolio Is Increased

question 3

Multiple Choice

As the number of stocks in a portfolio is increased:

• A) Unique risk decreases and approaches to zero
• B) Market risk decreases
• C) Unique risk decreases and becomes equal to market risk
• D) Total risk approaches to zero

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Definitions:

Monochronic Cultures

Cultures that value doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.

Polychronic Cultures

Societies that value multitasking and the simultaneous handling of engagements over a focus on punctuality and schedules.

Cultural Intelligence

The capability to relate and work effectively across cultures, understanding and respecting cultural differences.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can improve personal and interpersonal effectiveness.