Which One of the Following Portfolios Might Be Expected to Exhibit

question 9

Multiple Choice

Which one of the following portfolios might be expected to exhibit less specific risk?

• A) Five random stocks; portfolio beta = 0.8
• B) Three random stocks; portfolio beta = 1.2
• C) Ten random stocks; portfolio beta = 1.0
• D) Twelve random stocks; portfolio beta unknown

---

Definitions:

Age 25

A milestone age often considered the beginning of full adulthood, associated with maturity and new legal rights or responsibilities.

Intimacy Versus Isolation

A stage in Erik Erikson's theory of psychosocial development where adults face the challenge of forming intimate relationships versus becoming isolated.

Erik Erikson

A psychoanalyst known for his theory on the psychosocial development of human beings.

Trust Versus Mistrust

The first stage in Erikson's theory of psychosocial development, where infants learn to trust or mistrust their caregivers and the world based on their interactions.