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:

Ore Mineral

Naturally occurring minerals from which metals or minerals of economic value can be extracted profitably.

Tectonic Plates

Large pieces of Earth's crust and uppermost mantle that move and interact with each other, driving geological activities like earthquakes and volcanoes.

Continental Crust

The thick part of the Earth's crust that forms the large landmasses, characterized by its granitic rock composition.

Oceanic Crust

The part of Earth's lithosphere that lies beneath ocean basins, composed mainly of basaltic rock and forming the outermost layer of the planet's structure.