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.

---

Definitions:

Expansion Tank

A component in a heating or cooling system that accommodates the expansion and contraction of fluid, preventing pressure damage.

ILSAC Standards

A set of performance criteria established by the International Lubricant Standardization and Approval Committee for automotive engine oils that ensure compliance with the efficiency and emission requirements.

GF-5 Ratings

Specifications defining the quality and performance characteristics of engine oils, established by the International Lubricants Standardization and Approval Committee (ILSAC).

Dex-Cool

A specific brand of antifreeze and coolant used in vehicles, known for its orange color and long-life properties.