Which of the Following Is Most Likely Correct for a Diversified

question 71

Multiple Choice

Which of the following is most likely correct for a diversified stock portfolio that exhibits a higher standard deviation than the market index?

• A)The portfolio contains fairly aggressive stocks
• B)The portfolio's stock plot below the security market line
• C)The portfolio's Beta is less than 1.0
• D)The portfolio contains a significant amount of unique risk

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity, or an ownership stake.

Due Diligence

An investigation or audit of a potential investment or product to confirm all facts, such as reviewing all financial records plus anything else deemed material.

Thalamus

A part of the brain that acts as a principal relay station for sensory information, directing it to appropriate areas of the brain for processing.

Physiological Explanation

An interpretation of a phenomenon or behavior by relating it to physiological processes and biological functions.