Which of the Following Is an Underlying Principle of the Portfolio

question 89

Multiple Choice

Which of the following is an underlying principle of the portfolio theory?

• A)Both systematic and unsystematic risk can be eliminated through diversification.
• B)Portfolio owners are concerned with the performance of the entire portfolio rather than that of the individual stocks in it.
• C)The lower the returns on a stock are, the higher is its risk.
• D)A stock's risk is independent of its return.

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Definitions:

Coughing

A sudden, forceful expulsion of air from the lungs, often a reflex to clear the airways of irritants or mucus.

Maximum Heart Rate

The highest heart rate an individual can achieve during maximal exercise, used to guide workout intensity.

Resting Heart Rate

The number of heartbeats per minute when a person is at rest, indicating cardiovascular fitness.

ATP

ATP, short for adenosine triphosphate, functions as the cellular energy courier, vital for metabolic activities.