Other Things the Same,as the Number of Stocks in a Portfolio

question 116

Multiple Choice

Other things the same,as the number of stocks in a portfolio rises,

• A)risk increases and the standard deviation of the return rises.
• B)risk increases and the standard deviation of the return falls.
• C)risk decreases and the standard deviation of the return rises.
• D)risk decreases and the standard deviation of the return falls.

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Definitions:

Shipping Costs

Expenses associated with the transportation of goods from one location to another, influencing pricing, supply chain decisions, and overall competitiveness.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change in the short term despite variations in production levels or sales volumes, such as rent, salaries, or insurance.

Total Revenue

The overall revenue that originates from a company's core operations, including the sale of its products or services.