Which of the Following Is Most Likely to Occur as You

question 79

Multiple Choice

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio,which currently consists of 3 average stocks?

• A) The diversifiable risk of your portfolio will likely decline,but the expected market risk should not change.
• B) The expected return of your portfolio is likely to decline.
• C) The diversifiable risk will remain the same,but the market risk will likely decline.
• D) Both the diversifiable risk and the market risk of your portfolio are likely to decline.
• E) The total risk of your portfolio should decline,and as a result,the expected rate of return on the portfolio should also decline.

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Definitions:

RPM

Revolutions Per Minute, a measurement of the frequency of rotation, specifying the number of turns completed in one minute around a fixed axis.

Data Transfers

The process of moving or copying data from one location to another, which can occur within or between computers or devices.

Stored

Refers to the act of keeping or placing data in a storage device for retrieval at a later time.

SATA Devices

SATA devices refers to storage gadgets that use Serial Advanced Technology Attachment (SATA) interface for connectivity and data transfer, known for its high-speed performance.