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:

High-Context Cultures

Societies or groups where communication is often indirect and relies heavily on contextual cues beyond just the spoken words.

Low-Context Cultures

Cultures where communication is explicit, and people are expected to express their thoughts, feelings, and ideas directly.

Territorial

Territorial refers to the natural or instinctual behavior of individuals or groups to claim and defend a physical area or space as their own, often against others.

Conservation Behaviors

Actions and practices undertaken by individuals or groups aimed at protecting the natural environment and conserving resources for future generations.