Which One of the Following Statements Is True

question 56

Multiple Choice

Which one of the following statements is true?

• A)Risk and return are inversely related.
• B)Investors are compensated only for diversifiable risk.
• C)The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.
• D)How a security affects the risk of a portfolio is less important than the actual risk of the security itself.
• E)Investing has two dimensions: risk and return.

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Definitions:

Reacts To

Responds to or undergoes a change in presence of another substance or condition.

Mental Disorders

A range of conditions affecting mood, thinking, and behavior, often diagnosed based on symptoms and impairing daily functioning.

Optimal Care

The best possible care given to patients, tailored to meet their specific needs effectively and efficiently.

Psychotherapy

A type of therapy used to treat mental health issues by talking with a psychiatrist, psychologist, or another mental health provider.