Which of the Following Concerns Is Likely to Be Most

question 93

Multiple Choice

Which of the following concerns is likely to be most important to portfolio investors seeking diversification?

• A)total volatility of individual securities.
• B)standard deviation of individual securities.
• C)correlation of returns between securities.
• D)achieving the risk-free rate of return.

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Definitions:

Mass Producer

A mass producer is a company or individual that manufactures goods in large quantities using standardized processes, usually to meet widespread consumer demand.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to inputs used in the production process.

Wage Rates

The standard amount of compensation given to employees for their services, usually expressed per hour or year.

Global Economy

The interconnected worldwide economic activities that involve the exchange of goods and services across national borders.