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A Stock Investor Owns a Diversified Portfolio of 15 Stocks

question 61

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A stock investor owns a diversified portfolio of 15 stocks.What will be the most likely effect on the portfolio's standard deviation if one more stock is added?


Definitions:

Haptic

Relating to or based on the sense of touch, particularly in reference to electronic devices that provide feedback through physical sensations or vibrations.

Proprioceptive Axons

Nerve fibers that convey information from the body to the brain regarding the position and motion of body parts.

Dorsal Spinothalamic Tract

A pathway in the spinal cord that transmits touch and proprioceptive information from the body to the thalamus in the brain.

Referred Pain

Pain that arises in one of the internal organs but is felt on the surface of the body.

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