Which of the Following Describes What Will Occur as You

question 86

Multiple Choice

Which of the following describes what will occur as you randomly add stocks to your portfolio?

• A) The nondiversifiable risk will decrease.
• B) Both the diversifiable and nondiversifiable risk will decrease.
• C) The portfolio return will increase.
• D) The diversifiable risk will decrease.

---

Definitions:

Chickenpox

A contagious disease characterized by itchy, red spots that turn into fluid-filled blisters and eventually scabs, caused by the varicella-zoster virus.

Blister

A small bubble on the skin filled with serum, lymph, or blood, typically caused by friction, burns, or other damage to the skin surface.

Prokaryotic Cell

A type of cell lacking a distinct nucleus and other organelles, found in organisms of the domains Bacteria and Archaea.

Bacterium

A domain of single-celled, prokaryotic organisms that are often characterized by cell walls, and can be found in a vast array of environments.