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:

Subliminal Stimulus

A sensory input that is below an individual's threshold for conscious perception but can still influence thoughts, feelings, or actions.

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, emotions, and experiences.

Transduction

The process by which a cell converts a signal or stimulus from one form to another, commonly used in reference to sensory information or genetic engineering.

Sensory Adaptation

A process in which sensory receptors progressively lose sensitivity to constant external stimuli over time.