Which One of the Following Is Eliminated, or at Least

question 75

Multiple Choice

Which one of the following is eliminated, or at least greatly reduced, by increasing the number of individual securities held in a portfolio?

• A)number of economic states
• B)various expected returns caused by changing economic states
• C)market risk
• D)diversifiable risk
• E)nondiversifiable risk

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Definitions:

Brain Seizure

A sudden surge of electrical activity in the brain that can affect how a person appears or acts for a short time and often results in convulsions, muscle spasms, or loss of consciousness.

Convulsion

A sudden, violent, irregular movement of the body, caused by involuntary contraction of muscles, often a symptom of epilepsy.

Voltage

An electrical measurement that represents the potential difference or electromotive force between two points, essential for the flow of current.

Neuronal Activity

The electrical and chemical processes occurring within neurons that facilitate the transmission of information throughout the nervous system.