A Stock Investor Owns a Diversified Portfolio of 15 Stocks

question 52

Multiple Choice

A stock investor owns a diversified portfolio of 15 stocks.What will be the likely effect on portfolio standard deviation from adding one more stock?

• A) A slight increase will occur.
• B) A large increase will occur.
• C) A slight decrease will occur.
• D) A large decrease will occur.

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Definitions:

Message Fostering Goodwill

Communication designed to create or enhance positive relations, showing kindness or good intentions towards others.

Letters of Recommendation

Written documents in which the writer appraises the qualities, characteristics, and capabilities of someone in support of that person's application for a specific job, scholarship, or position.

Routine Messages

Standardized communications used for regular, everyday business operations, often involving instructions, updates, or requests.

Build Goodwill

Refers to the process of creating positive relationships and perceptions among customers, employees, or stakeholders, contributing to a favorable business environment.