Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A) A single stock has a lot of diversifiable risk.
• B) A single stock has more market risk than a diversified portfolio of stocks.
• C) Bonds and stocks have a high correlation because they are both financial assets.
• D) None of these statements are correct.

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Definitions:

Terman and Oden

Researchers known for their longitudinal study on gifted children, calling it the Genetic Studies of Genius.

Intellectual Disability

A term describing individuals who have significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a central region.

Heritability

Degree to which the changes in some trait within a population can be considered to be due to genetic influences; the extent to which individual genetic differences affect individual differences in observed behavior; in IQ, proportion of change in IQ within a population that is caused by hereditary factors.