The Riskiness of Individual Assets

question 19

Multiple Choice

The riskiness of individual assets

• A) should be considered for the asset in isolation.
• B) should be considered in the context of the effect on overall portfolio volatility.
• C) combined with the riskiness of other individual assets (in the proportions these assets constitute of the entire portfolio)should be the relevant risk measure.
• D) b and c.
• E) none of these.

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Definitions:

Energized Solenoids

Solenoids that have been activated through electrical current, thereby moving or controlling a mechanism or system.

Neutral

A transmission setting in which no gear is engaged, allowing the engine to operate or idle without driving the wheels.

ECU

Engine Control Unit; a type of electronic control unit that controls a series of actuators on an internal combustion engine to ensure optimal engine performance.