A Stock That Is Considered to Be a Positive Risk

question 44

Multiple Choice

A stock that is considered to be a positive risk asset is added to a portfolio.As a result,the portfolio will:

• A) have lower average returns.
• B) have a lower variance of returns.
• C) have a higher volatility of returns.
• D) have a lower correlation of returns with stock market indexes.

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Definitions:

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National Transportation Network

An interconnected system of transportation facilities, including roads, railways, airways, and waterways, that facilitates movement across a nation.

War of 1812

A military conflict fought between the United States and the British Empire, along with its Native American allies, from 1812 to 1815, largely over issues of trade and maritime rights.

Reliable Road System

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