Portfolio a Contains Only One Security,while Portfolio B Contains 100

question 81

True/False

Portfolio A contains only one security,while Portfolio B contains 100 securities.Because of diversification effects,we would expect Portfolio B to have the lower relevant risk,but it is possible for Portfolio A to be less risky.

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Definitions:

Thirteenth

Refers to the Thirteenth Amendment of the United States Constitution, which abolished slavery and involuntary servitude, except as punishment for a crime.

Fourteenth

Refers to the Fourteenth Amendment of the U.S. Constitution, which addresses citizenship rights and equal protection under the law.

Old Confederacy

A term referring to the eleven Southern states that seceded from the United States in 1860-61, leading to the American Civil War.

Voting Rights Act

The Voting Rights Act of 1965 is landmark federal legislation in the United States that prohibits racial discrimination in voting, aiming to ensure fair and equal voting rights for all American citizens.