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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:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.

Surplus

An excess of production or supply over demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

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