If an Investor Owns a Well-Diversified Portfolio, Then

question 1

Multiple Choice

If an investor owns a well-diversified portfolio, then

• A) his portfolio does not involve any risk.
• B) the idiosyncratic risk in his portfolio is minimized.
• C) the systemic risk in his portfolio is minimized.
• D) his portfolio will have the highest expected return.

---

Definitions:

Mildly Hostile Humor

Forms of humor that contain subtle or indirect expressions of hostility or criticism, often used to mask aggression or discontent.

Aggressive Themes

Narrative or symbolic patterns in various forms of representations, emphasizing themes of aggression and conflict.

Tension Build-Up

The accumulation of stress or pressure over time, often leading to emotional or physical distress.

Punch Line

The climax or critical point of a joke or funny story that triggers laughter or amusement.