Diversification Can Effectively Reduce Risk

question 110

Multiple Choice

Diversification can effectively reduce risk.Once a portfolio is diversified the type of risk remaining is:

• A)total standard deviations.
• B)risk related to the market portfolio.
• C)riskless security risk.
• D)individual security risk.
• E)None of the above.

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Definitions:

Fetal Exposure

Refers to the exposure of a fetus to substances, conditions, or influences in the womb that can affect development.

Neural Tube

The precursor to the central nervous system in vertebrates, which later develops into the brain and spinal cord during embryonic growth.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, governing both voluntary actions like walking and involuntary ones like breathing.

Embryo

An early stage of development for multicellular organisms following fertilization, during which the organism undergoes division and growth.