As the Number of Stocks in a Person's Portfolio Increases

question 28

Multiple Choice

As the number of stocks in a person's portfolio increases,

• A)the risk of the portfolio increases,as indicated by the increasing value of the standard deviation of the portfolio.
• B)the risk of the portfolio increases,as indicated by the decreasing value of the standard deviation of the portfolio.
• C)the risk of the portfolio decreases,as indicated by the increasing value of the standard deviation of the portfolio.
• D)the risk of the portfolio decreases,as indicated by the decreasing value of the standard deviation of the portfolio.

---

Definitions:

Mortgage Default

Occurs when a borrower fails to make required payments on their mortgage loan, risking foreclosure and loss of property.

Economic Crisis

A situation in which a country experiences a severe downturn in its economy, characterized by a significant decline in economic activity, high unemployment, and financial instability.

Consumer Ratings Magazines

are publications that evaluate and review products and services based on various parameters to guide consumer decisions.

Brand Names

Names given to products or services by companies to distinguish them from competitors.