Which of the Following Statements Is CORRECT

question 5

Multiple Choice

Which of the following statements is CORRECT?

• A) An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks.
• B) The higher the correlation between the stocks in a portfolio,the lower the risk inherent in the portfolio.
• C) It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.
• D) Once a portfolio has about 40 stocks,adding additional stocks will not reduce its risk by even a small amount.
• E) An investor can eliminate virtually all diversifiable risk if he or she holds a very large,well-diversified portfolio of stocks.

Analyze the implications of television viewing on children, both positive and negative.

Understand the primary theories of language development and critically evaluate supporting and opposing evidence.

Summarize Jean Piaget’s theory of cognitive development across various stages and identify the achievements and constraints at each phase.

Understand the dynamic and diverse nature of postmodern cities.

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Definitions:

Belief Systems

The collections of principles that shape the perspectives and behaviors of individuals or groups, often encompassing religious, political, and philosophical views.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers an automatic response without prior conditioning.

Conditioned Response

A learned reaction or behavior to a conditioned stimulus that occurs after conditioning in classical conditioning experiments.

Unconditioned Response

An automatic, reflexive reaction that occurs in response to an unconditioned stimulus without prior learning or conditioning.