Which of the Following Is/are True

question 21

Multiple Choice

Which of the following is/are true?

• A) Most of the unsystematic risk is removed by the time a portfolio contains 30 stocks.
• B) Two points on the Characteristic Line are the T-bill and the market portfolio.
• C) The greater the total risk of an asset, the greater the expected return.
• D) All securities have a beta between 0 and 1.

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Definitions:

Outdoor Furniture

Furniture specifically designed to be used outside, typically made of materials that are resistant to weather, such as waterproof fabrics and rust-resistant metals.

Summer Season

The warmest season of the year, typically occurring between spring and autumn in temperate regions, and often associated with outdoor activities and vacations.

Push Strategy

A marketing strategy where businesses push their products to be seen by consumers, typically through distribution channels, to increase demand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.