The Less Correlated the Securities in a Portfolio

question 23

Multiple Choice

The less correlated the securities in a portfolio,

• A)the lower the portfolio risk.
• B)the higher the portfolio risk.
• C)the lower the unsystematic risk.
• D)the higher the diversifiable risk.

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Definitions:

Equal Opportunity

Equal opportunity is a principle ensuring that all individuals have the same chances to compete for and obtain jobs, education, and other resources, without discrimination based on irrelevant characteristics.

Gender Role Stereotypes

Preconceived ideas and expectations about behaviors, attributes, and roles that society considers appropriate for men and women.

Promotion Decisions

The process of deciding which employees to advance to higher positions within an organization, based on criteria such as performance and potential.

Formal Procedures

Established and officially sanctioned methods and processes used to accomplish tasks or solve problems.