The Incremental Risk to a Portfolio from Adding Another Stock

question 35

Multiple Choice

The incremental risk to a portfolio from adding another stock:

• A) is always greater than the average portfolio risk.
• B) is always less than the average portfolio risk.
• C) is always positive.
• D) is often positive but can be negative.

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Definitions:

Lynching

An extrajudicial killing by a group, primarily used in the United States to describe the murder of African Americans by mob action.

Black Women's Clubs

Organizations formed in the late 19th and early 20th centuries by African American women to address issues of civil rights, education, and welfare in their communities.

Segregation

describes the enforced separation of different racial, ethnic, or social groups within a society.

National Child Labor Committee

An American organization founded in 1904 with the aim of abolishing child labor, seeking to promote laws and policies that protect children from exploitation in the workforce.