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:

Prenatal Risk Factors

Conditions or exposures that occur before birth which may pose risks to a fetus's health or development.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality into fantasy and delusion, and a sense of mental fragmentation.

Narcotic Drugs

Substances that produce a state of narcosis, including pain relief and sleep, often leading to dependence and addiction.

Second Trimester

The middle period of human pregnancy, spanning from the 13th to the 26th week, characterized by continued development of the fetus.