The Risk of a Portfolio

question 69

Multiple Choice

The risk of a portfolio

• A)increases as the number of stocks in the portfolio increases.
• B)is usually measured using a statistic called the standard diversification.
• C)is positively related to the average return of the portfolio.
• D)bears no relationship to the average return of the portfolio.

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Definitions:

Immunoglobulin

A group of large Y-shaped proteins, also known as antibodies, that are used by the immune system to identify and neutralize foreign objects like bacteria and viruses.

Recognizes

The act of identifying someone or something as having been previously seen, known, or understood.

Bacteria

Microscopic, single-celled organisms found in diverse environments, some of which can cause disease, while others are beneficial.

Anaphylaxis

A severe allergic reaction with symptoms that include respiratory distress, difficulty in swallowing, pallor, and a drastic drop in blood pressure that can lead to circulatory collapse.