In a Portfolio of Three Randomly Selected Stocks, Which of the Following

question 16

Multiple Choice

In a portfolio of three randomly selected stocks, which of the following could NOT be true; i.e., which statement is false?

• A) The standard deviation of the portfolio is greater than the standard deviation of one or two of the stocks.
• B) The beta of the portfolio is lower than the lowest of the three betas.
• C) The beta of the portfolio is equal to one of the three stock's betas.
• D) The beta of the portfolio is equal to 1.
• E) The standard deviation of the portfolio is less than the standard deviation of each of the stocks if they were held in isolation.

Understand the construction and interpretation of histograms.

Determine the appropriate measure of central tendency and variability for a given dataset.

Ability to interpret stem-and-leaf displays to analyze data distribution.

Recognize the skewness and modality of data distributions through graphical representations.

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Definitions:

Refugees

Individuals who flee their country due to war, persecution, or natural disaster and seek protection in another country.

Affiliation Needs

The human desire to feel a sense of involvement and belonging within a social group.

Achievement Needs

An individual's need for success and accomplishment, often driving motivation and goal-oriented behavior.

Safety Needs

A level in Maslow's hierarchy of needs that encompasses security, protection, and freedom from fear and anxiety.