The Systematic Risk (Beta)of a Portfolio Is ________ by Holding

question 27

Multiple Choice

The systematic risk (beta) of a portfolio is ________ by holding more stocks,even if they each had the same systematic risk.

• A)unchanged
• B)increased
• C)decreased
• D)eliminated
• E)doubled

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Definitions:

Temporal Lobe

A region of the brain responsible for processing auditory information and is also involved in memory and emotions.

Synesthesia

A condition in which stimulation of one sensory or cognitive pathway leads to involuntary experiences in a second sensory or cognitive pathway.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to depth perception.

Motion Parallax

A depth cue in which objects closer to the observer move faster across the visual field than objects farther away, providing a sense of depth.