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:

Legitimate Grounds

Valid or justifiable reasons for taking a certain action or stance.

Appeal

The process by which a party to a case seeks a formal change to an official decision, usually through a higher court's review of the lower court's decision.

Jurors

Members of a trial or grand jury who are selected to examine the evidence in a legal case and make a decision or finding of fact.

Trial

A formal judicial proceeding where parties present evidence and arguments to a judge or jury for a legal dispute resolution.