Which of the Following Statements Is Most Correct

question 76

Multiple Choice

Which of the following statements is most correct?

• A) The variance of a portfolio is a weighted average of asset variances.
• B) The benefits of diversification are greatest when asset returns have zero correlations.
• C) The market portfolio truly eliminates all unsystematic risk.
• D) Beta is the measure of an asset's unsystematic risk.

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Definitions:

Great Depression

A global economic crisis that occurred in the 1930s, marked by extreme financial hardship.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant political and geographic changes.

GDP

Gross Domestic Product, a standard measure of a nation's total economic production over a specified time period, representing the total value of all goods and services produced.

Industrial Market Economies

These are economies characterized by significant industrial activity, where goods are produced using advanced technological means.