The Incremental Risk to a Portfolio from Adding Another Stock

question 35

Multiple Choice

The incremental risk to a portfolio from adding another stock:

• A) is always greater than the average portfolio risk.
• B) is always less than the average portfolio risk.
• C) is always positive.
• D) is often positive but can be negative.

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Definitions:

Delusional Description

Characterization of thoughts or beliefs that are firmly maintained despite being contradicted by what is generally accepted as reality.

Sexual Assault

Any form of non-consensual sexual activity or behavior that is committed by force, coercion, manipulation, or deception.

Pregnancy

A condition in which a woman carries a developing fetus within her uterus, typically lasting around 40 weeks from the last menstrual period.

Personal Hygiene

The practice of maintaining cleanliness and grooming of the body to promote health and well-being.