As the Number of Individual Stocks in a Portfolio Increases

question 58

Multiple Choice

As the number of individual stocks in a portfolio increases, the portfolio standard deviation:

• A)increases at a constant rate.
• B)remains unchanged.
• C)decreases at a constant rate.
• D)decreases at a diminishing rate.
• E)decreases at an increasing rate.

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Definitions:

Coronary Artery Disease

A condition characterized by narrowed or blocked coronary arteries, leading to reduced blood flow to the heart.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out to the body through the aorta.

Aorta

The largest artery in the body, originating from the left ventricle of the heart and extending down to the abdomen, supplying oxygenated blood to the circulatory system.

Pulmonary Trunk

The major blood vessel transporting deoxygenated blood from the right ventricle of the heart to the lungs.