An Increase in the Number of Corporations in a Portfolio

question 62

Multiple Choice

An increase in the number of corporations in a portfolio from 110 to 120 reduces

• A)market risk by more than an increase from 1 to 10.
• B)market risk by less than an increase from 1 to 10.
• C)firm-specific risk by more than an increase from 1 to 10.
• D)firm-specific risk by less than an increase from 1 to 10.

---

Definitions:

Indians in the West

Refers to the movement and settlement of Native American populations across the western regions of North America, significantly influenced by European expansion and U.S. government policies.

Navajo

A Native American people of the Southwestern United States, renowned for their rich cultural heritage, including art, textiles, and beliefs.

Union Army

The land force that fought for the Union during the American Civil War, which was primarily composed of regiments from the Northern states.

Copperheads

Copperheads were a faction of Northern Democrats during the American Civil War who opposed the war and advocated for peace with the Confederacy.