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:

Electromyograph

An instrument used to measure and record the electrical activity produced by skeletal muscles.

Muscular Tension

Physical discomfort or the feeling of tightness in the muscles, often a response to stress or anxiety.

Biofeedback

A technique in which a client is given information about physiological reactions as they occur and learns to control the reactions voluntarily.

Body

The physical structure of a person or an organism, including the bones, flesh, and organs.