A Stock That Is Considered to Be a Positive Risk

question 17

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

Adopt strategies to cope with and recover from academic setbacks.

Understand the use of study tools and techniques to expand vocabulary and grasp new concepts.

Recognize the structure and unique features of textbooks across different subjects.

Understand how to effectively use primary sources and scholarly articles for academic purposes.

---

Definitions:

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between businesses, to cheat or deceive others, typically by fixing prices or rigging markets.

Market Outcome

A result of interactions between buyers and sellers in a market, determining the price and quantity of goods or services traded.

Pure Monopoly

A market structure where a single seller sells a unique product in the market and no close substitutes exist.

Cartel

Market in which some or all firms explicitly collude, coordinating prices and output levels to maximize joint profits.