Which of the Following Statements Is CORRECT

question 129

Multiple Choice

Which of the following statements is CORRECT?

• A) A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.
• B) Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
• C) A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.
• D) A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.

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Definitions:

Anatomic Dead Space

The portion of the respiratory system that conducts air but does not participate in gas exchange, including the nose, trachea, and bronchi.

Anatomic Dead Space

The portion of the respiratory system where gas exchange does not occur, including the trachea and bronchi.

Alveolar Dead Space

is the portion of the respiratory system where alveoli are ventilated but not perfused with blood, thus not participating in gas exchange.

Tidal Volume

The volume of air that is inhaled or exhaled in a normal breath at rest.