A Stock That Is Considered to Be a Positive Risk

question 44

Multiple Choice

A stock that is considered to be a positive risk asset is added to a portfolio.As a result,the portfolio will:

• A) have lower average returns.
• B) have a lower variance of returns.
• C) have a higher volatility of returns.
• D) have a lower correlation of returns with stock market indexes.

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Definitions:

Substance Abuse

The harmful and excessive use of psychoactive substances, including alcohol and drugs, leading to addiction or other detrimental effects.

Abstract Problem-Solving

The ability to solve problems that do not have a physical, concrete presence, often requiring conceptual and cognitive strategies.

Wisdom

The ability to apply knowledge, experience, understanding, and insight to make sound judgments and decisions.

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A common condition causing inflammation and pain in one or more joints, characterized by swelling, stiffness, and often chronic pain.