In a Portfolio of Three Different Stocks,which of the Following

question 76

Multiple Choice

In a portfolio of three different stocks,which of the following could not be true?

• A) The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation.
• B) The riskiness of the portfolio is greater than the riskiness of one or two of the stocks.
• C) The beta of the portfolio is less than the beta of each of the individual stocks.
• D) The beta of the portfolio is greater than the beta of one or two of the individual stock's betas.
• E) None of the above (i.e. ,they all could be true,but not necessarily at the same time).

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Definitions:

Universal-Linguistic Theory

A theory suggesting that there are innate, universal grammar rules shared across all human languages, proposed by linguist Noam Chomsky.

Learning Theory Approach

A perspective focusing on how individuals acquire new behaviors and knowledge through interactions with the environment, emphasizing the role of reinforcement and observation.

Telegraphic Speech

A stage in early child language development characterized by two-word sentences that express essential ideas, resembling the succinctness of a telegram.

Prelinguistic Speech

Vocalizations made by infants before they acquire language, including crying, cooing, and babbling.