Which of the Following Is Not a Determinant of the Risk

question 56

Multiple Choice

Which of the following is not a determinant of the risk of a portfolio?

• A)the amount of money invested in each asset in the portfolio
• B)the expected returns on the individual assets in the portfolio
• C)the number of assets in the portfolio
• D)the degree to which the returns of the assets in the portfolio move together

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Definitions:

Constant Rate

A stable, unchanging rate, often referring to growth rates, interest rates, or other financial metrics that do not fluctuate over a specified period.

Share

A unit of ownership interest in a corporation or financial asset, giving the holder a proportionate claim on the company’s assets and profits.

Annual Dividend

The total dividend payment a company distributes to its shareholders for each share held over the course of a year.

Required Rate

Often referred to as the required rate of return, this is the minimum annual percentage return an investor expects to achieve from an investment.