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:

Condensation Reaction

A chemical reaction where two molecules combine to form a single molecule, releasing a small molecule as a byproduct, such as water.

Polypeptide Chain

A linear organic polymer consisting of a large number of amino-acid residues bonded together in a chain, forming part of (or the whole of) a protein molecule.

Regulatory Proteins

Proteins that control the expression of genes or the activity of other proteins, playing crucial roles in the regulation of cellular processes.

Control Activities

Measures and procedures implemented to mitigate risks and ensure that objectives are achieved in any given system or process.