If a Stock Portfolio Is Well Diversified, Then the Portfolio

question 349

Multiple Choice

If a stock portfolio is well diversified, then the portfolio variance:

• A) Will equal the variance of the most volatile stock in the portfolio.
• B) May be less than the variance of the least risky stock in the portfolio.
• C) Must be equal to or greater than the variance of the least risky stock in the portfolio.
• D) Will be a weighted average of the variances of the individual securities in the portfolio.
• E) Will be an arithmetic average of the variance of the individual securities in the portfolio.

Understand the factors contributing to the premature extinction of species.

Comprehend the ecological, economic, and recreational values of wild species.

Identify the major threats to species including habitat destruction, illegal wildlife trade, and the introduction of non-native species.

Recognize the importance of biodiversity and the role of keystone, endemic, and indicator species in ecosystems.

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Definitions:

Subconscious Influence

The impact on an individual's thoughts, feelings, and behaviors by processes beneath the conscious level of awareness.

Style of Life

A concept introduced by Alfred Adler, suggesting that individuals develop unique methods of achieving self-ideals and goals which guide their behavior.

Achieving Superiority

The pursuit and accomplishment of reaching a higher status, skill level, or quality compared to others.

Alfred Adler

A psychologist and founder of Adlerian psychology, emphasizing the importance of feelings of inferiority and community life.