If an Investor Does Not Diversify Their Portfolio and Instead

question 21

Multiple Choice

If an investor does not diversify their portfolio and instead puts all of their money in one share, the appropriate measure of security risk for that investor is the ________.

• A)share's standard deviation
• B)variance of the market
• C)share's beta
• D)covariance with the market index

---

Definitions:

Surgeons

Medical specialists who perform operations to treat diseases, injuries, or deformities.

Automation Process

The use of technology and software to operate and control production and service processes with minimal human intervention.

Storyboarding

A visual process in filmmaking, gaming, and advertising where sequences of drawings or images are laid out to pre-visualize scenes and sequences.

Original Cost

The initial purchase price or production cost of an asset or investment, not including subsequent expenses or depreciation.