The Incremental Risk to a Portfolio from Adding Another Stock

question 35

Multiple Choice

The incremental risk to a portfolio from adding another stock:

• A) is always greater than the average portfolio risk.
• B) is always less than the average portfolio risk.
• C) is always positive.
• D) is often positive but can be negative.

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Definitions:

Wage Equalization

The concept of aligning wages or salaries across different regions, industries, or roles to achieve fairness and balance.

Remittances

Money sent by individuals working abroad back to their home country, often to support family members.

Brain Drain

The phenomenon of skilled professionals emigrating from one country to another, often in search of better opportunities.

Cash Welfare Payments

Government-provided financial assistance to individuals or families, often aimed at reducing poverty.