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:

Experiences

Events or occurrences that leave an impression on someone, contributing to their knowledge or development.

Expectations

Beliefs about the way things will or should develop in the future, often based on past experiences or societal norms.

Positive Psychology

The scientific study of human strengths and virtues that enable individuals and communities to thrive.

Leadership Role

A position within an organization or group that involves guiding and influencing others towards achieving common goals.