A Completely Diversified Portfolio Will Have a Correlation with the Market

question 86

Multiple Choice

A completely diversified portfolio will have a correlation with the market portfolio that is which of the following?

• A) less than one because it carries only market risk
• B) less than one because it carries only diversifiable risk
• C) equal to one because it carries only diversifiable risk
• D) equal to one because it carries only market risk

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Definitions:

Digestion

The biochemical breakdown of food into smaller, absorbable components in the digestive tract.

Oropharynx

The oropharynx is the middle part of the throat (pharynx) that lies behind the mouth, extending from the uvula to the level of the hyoid bone, and includes the back third of the tongue, the soft palate, and the tonsils.

Nasopharynx

The upper part of the throat located behind the nose, forming a passage for airflow from the nasal cavity to the larynx and esophagus.

Laryngopharynx

The part of the pharynx that lies inferior to the epiglottis and extends to the location where the esophagus and trachea diverge.