Which One of the Following Would Tend to Indicate That

question 1

Multiple Choice

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

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

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Definitions:

Technological Change

The innovation and improvement in technology, processes, or methods, leading to increased efficiency, productivity, and new product development, affecting various sectors of an economy.

Productivity Growth

The increase in the efficiency of production in an economy, often measured by the output per unit of input over time.

Disposable Income

After-tax income. Term applies to individuals and to the nation.

Welfare Rolls

A list or register of individuals who are receiving welfare benefits provided by a government.