Refer to Figure 14.1 for the Following Questions

question 33

Multiple Choice

Refer to Figure 14.1 for the following questions.
Figure 14.1

-Consider the market for dollars against the British pound shown in Figure 14.1. From this graph, we can conclude that the dollar price of a British pound has ________ to ________ dollars per pound.

• A)decreased; 0.46
• B)increased; 2.17
• C)decreased; 2.00
• D)increased; 0.50

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Definitions:

Risky Stock

Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.

Diversified Portfolio

An investment portfolio constructed with a mix of assets to reduce exposure to risk associated with any single asset or asset class.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic shifts or political events.

Asset-Specific Risk

The risk associated with holding a particular asset, which can be reduced through diversification.