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:

Employer's Assets

Resources of value owned by an employer, including physical assets, financial assets, and intangible assets like goodwill.

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.

Cost Of Goods Manufactured

Cost of goods manufactured (COGM) is the total production cost of goods completed during a specific period, including materials, labor, and overhead.

Volume Of Activity

A measure of the quantity of work performed or production completed, often influencing costs and revenues in businesses.