The Risk Associated with a Portfolio

question 26

Multiple Choice

The risk associated with a portfolio

• A) declines exponentially as the number of stocks purchased increases and continues to decline until a point of zero risk is reached.
• B) decreases as the investor increases the number of stocks in her portfolio.
• C) grows exponentially with the number of stocks purchased.
• D) increases as the investor increases the number of stocks in her portfolio.

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Definitions:

Sender

The individual or entity initiating a message or communication to another party or parties.

Receiver

A receiver in communication refers to the individual or group that interprets or decodes the message sent by the sender.

Decoder

In communication, the process or device for interpreting or giving meaning to a message received from a sender.

Oral Communication

The ability to give and exchange information, ideas, and processes verbally, either one on one or as a group.