A Stock That Is Risky on a Stand-Alone Basis

question 191

Multiple Choice

A stock that is risky on a stand-alone basis:

• A)is just as risky in a portfolio.
• B)is one that just about never produces a return that's higher than expected.
• C)is likely to produce a return that is substantially different from its mean or expected return.
• D)will have no effect on a portfolio's risk if it is added carefully.

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Definitions:

Polyurethane

A versatile polymer used in various applications, including medical devices, elastomers, foams, and coatings.

Secondary Intention

Wound healing that occurs by granulation, contraction, and epithelialization, often used for wounds that cannot be closed by primary intention.

Deep Pressure Ulcers

Severe injuries to the skin and underlying tissue resulting from prolonged pressure on the skin.

Infected Wounds

Refers to wounds that have been contaminated with pathogenic microorganisms, leading to infection characterized by redness, pain, warmth, and possibly discharges.