Which One of the Following Is Most Likely Correct for a Diversified

question 78

Multiple Choice

Which one of the following is most likely correct for a diversified stock portfolio that exhibits a higher standard deviation than the market index?

• A) The portfolio contains aggressive stocks with a beta greater than 1.0
• B) The portfolio plots below the security market line.
• C) The portfolio's beta is less than 1.0.
• D) The portfolio contains a significant amount of specific risk.

---

Definitions:

Components

Fundamental parts or elements that make up a system or compound.

Arrangement

The way in which items or elements are organized or laid out.

Involuntary Urination

The unintentional release of urine, which can occur due to a lack of control over bladder functions, also known as urinary incontinence.

External Urethral Sphincter

A muscle that controls the flow of urine from the bladder through the urethra.