Which One of the Following Would Indicate a Portfolio Is

question 121

Multiple Choice

Which one of the following would indicate a portfolio is being effectively diversified?

• A) an increase in the portfolio beta
• B) a decrease in the portfolio beta
• C) an increase in the portfolio rate of return
• D) an increase in the portfolio standard deviation
• E) a decrease in the portfolio standard deviation

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Definitions:

Confidential Relationship

A relationship where one party places trust and confidence in another with the expectation that the latter will act in their best interest, typically involving nondisclosure of certain information.

Undue Influence

A situation where an individual is able to persuade another's decisions due to the relationship between the two parties, often leading to unfair advantage.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person, raising questions about the voluntariness of the act.

Scienter

In legal contexts, scienter is the knowledge or intent to deceive, defraud, or violate statutes or regulations.