Which of the Following Portfolios Might Be Expected to Exhibit

question 6

Multiple Choice

Which of the following portfolios might be expected to exhibit less unique risk?

• A) Five random stocks; portfolio beta = .8
• B) Three random stocks; portfolio beta = 1.2
• C) Ten random stocks; portfolio beta = 1.0
• D) Twelve random stocks; portfolio beta unknown

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Definitions:

Relatively Rational

decision-making or thinking that is sensible within a specific context, acknowledging that rationality can vary based on circumstances and perspectives.

Little Decision Making

Situations where individuals have minimal or no choice in the decisions affecting them.

Violence Against

The use of physical force or power, threatened or actual, to cause harm, injury, or abuse toward others.

Similar To Murder

Acts or crimes that bear resemblance to murder in their severity or intention, such as manslaughter or attempted murder.