Decreasing the Number of Stocks in a Portfolio from 50

question 69

Multiple Choice

Decreasing the number of stocks in a portfolio from 50 to 10 would likely ________.

• A) increase the systematic risk of the portfolio
• B) increase the unsystematic risk of the portfolio
• C) increase the return of the portfolio
• D) decrease the variation in returns the investor faces in any one year

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Definitions:

Androcentric Cultures

Societies or cultural settings that prioritize male perspectives and experiences, often marginalizing female viewpoints.

Labeled

The action of assigning a name or category to someone or something, often in a simplifying or dismissive way.

Unreasonable

Lacking sound judgment; not guided by rational thinking or fairness.

Masochistic

Inclined towards masochism, which involves deriving pleasure, especially sexual gratification, from one's own pain or humiliation.