Which of the Following Is TRUE

question 52

Multiple Choice

Which of the following is TRUE?

• A)Large numbers of securities are required to achieve diversification.
• B)Portfolio risk can always be reduced by adding additional securities.
• C)Systematic risk can never be eliminated through diversification.
• D)Non-systematic risk can never be reduced.

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Definitions:

Standard Deviation

A statistic that quantifies the spread or dispersion of a distribution, indicating the average distance from the mean for data points.

Confidence Interval

A span of values, acquired through sample analysis, that is presumed to enclose the value of an undetermined population attribute.

Functioning Time

The duration or period during which a system, device, or component operates effectively.

Standard Deviation

A gauging of the extent of deviation or scattering among a group of figures.