As You Add More Stocks to a Portfolio

question 96

Multiple Choice

As you add more stocks to a portfolio:

• A) specific risk at first falls, then rises.
• B) market risk is increasingly diversified away.
• C) specific risk is increasingly diversified away.
• D) market risk declines but specific risk rises.

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Definitions:

Administrative Tribunals

Specialized dispute adjudication forums created by statute, that have been given quasi-judicial powers to resolve disputes and enforce legislation.

Legislative Branch

The division of government responsible for creating, amending, and repealing laws, often consisting of one or more houses or assemblies.

Judicial Branch

The Judicial Branch is one of the three branches of government, primarily responsible for interpreting the law, resolving disputes under the law, and deciding on the constitutionality of laws.

Government Bureaucrat

An official working within the complex administrative system of government, responsible for implementing policies, laws, and regulations.