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:

Minimum Hourly Wage

The lowest legal hourly pay that workers can receive, which is set by government law or regulation.

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An individual who receives a salary or wages in exchange for labor or services provided to an employer.

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Charles Murray

An American political scientist and author known for his controversial works on intelligence, education, and social policy.