The Incremental Risk to a Portfolio from Adding Another Stock

question 53

Multiple Choice

The incremental risk to a portfolio from adding another stock:

• A) is always greater than the average portfolio risk.
• B) is always less than the average portfolio risk.
• C) is always positive.
• D) may be either positive or negative.

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Definitions:

Customer Problems

Issues or complaints that consumers face while using a product or service, often addressed by businesses through customer service or product improvements.

Exit Strategy

An exit strategy is a planned approach to withdraw from a business or investment, aiming to secure maximum gain or minimize loss, often considered by entrepreneurs and investors from the outset.

Financial Plan

A comprehensive evaluation and strategy that outlines an individual's or entity's current financial situation and future objectives.

Critical Risks

Significant potential challenges or threats that could have adverse effects on an enterprise's operations or success.