Which One of the Following Is Most Likely Correct for a Diversified

question 82

Multiple Choice

Which one of the following is most likely correct for a diversified stock portfolio that exhibits a higher standard deviation than the market index?

• A) The portfolio contains fairly aggressive stocks.
• B) The portfolio plots below the security market line.
• C) The portfolio's beta is less than 1.0.
• D)The portfolio contains a significant amount of unique risk.

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Definitions:

Zygomatic

Relating to the zygoma or cheekbone, which is the bone that creates the cheek's prominent feature.

Lacrimal

Pertaining to tears or the glands that produce tears.

Lambdoid

Referring to the lambdoid suture, a dense, fibrous connective tissue joint that lies between the parietal and the occipital bones at the posterior part of the skull.

Sagittal

A term referring to a plane or section that divides the body or any of its parts into right and left sections.