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:

Air Disc Brakes

Air disc brakes are a type of brake system for heavy-duty vehicles that use air pressure to apply pressure to a disc, slowing or stopping the vehicle.

FMVSS-121

A specific Federal Motor Vehicle Safety Standard related to air brake systems in trucks and buses, ensuring safe braking performance.

Service Brakes

The primary braking system used in vehicles and machinery for regular stopping and speed control, as opposed to emergency or parking brakes.

Hold-Off Circuit

A control circuit used in hydraulic braking systems, designed to delay the hydraulic pressure application to certain parts of the system.