Which of the Following Is Most Likely Correct for a Diversified

question 25

Multiple Choice

Which 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's stock plot 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:

Tariffs

Taxes imposed by a government on imported goods.

International Boundaries

Geographic demarcations that define the territorial limits between different sovereign states.

Taxes

Compulsory financial charges or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Total Logistics Costs

The cumulative expenses associated with the planning, implementing, and controlling of the movement and storage of goods and services from their point of origin to their point of consumption.