A Stock That Is Considered to Be a Positive Risk

question 44

Multiple Choice

A stock that is considered to be a positive risk asset is added to a portfolio.As a result,the portfolio will:

• A) have lower average returns.
• B) have a lower variance of returns.
• C) have a higher volatility of returns.
• D) have a lower correlation of returns with stock market indexes.

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Definitions:

Spatial Navigation

Spatial navigation involves the ability to orient oneself and plan routes in the environment, relying on cognitive maps and landmarks.

Hemispheres

The two halves of the brain, the right and left hemispheres, each responsible for different functions and controls opposite sides of the body.

Enteric Nervous System (ENS)

Mesh of neurons embedded in the lining of the gut, running from the esophagus through the colon; controls the gut.

Autonomic Nervous System (ANS)

Part of the PNS that regulates the functioning of internal organs and glands.