Which of the Following Concerns Is Likely to Be Most

question 40

Multiple Choice

Which of the following concerns is likely to be most important to portfolio investors seeking diversification?

• A) Total volatility of individual securities
• B) Standard deviation of individual securities
• C) Correlation of returns between securities
• D) Achieving the risk-free rate of return

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Definitions:

Exploit

To take advantage of a situation or person, often unfairly or unethically, for personal gain.

Liberation

The act of setting someone free from imprisonment, slavery, or oppression; the achievement of equal rights and freedom for a group or individual.

Biased-Based Bullying

Bullying resulting from bias against someone because of a real or perceived aspect of their identity.

Homogeneity

The quality or state of being all the same or all of the same kind, often used to describe a population or area with a lack of diversity.