Which Share Is Likely to Further Reduce Risk for an Investor

question 12

Multiple Choice

Which share is likely to further reduce risk for an investor currently holding his portfolio in a well-diversified portfolio of common share?

• A)Share A
• B)Share B
• C)There is no difference between A or B
• D)You cannot tell from the information given The figures below show plots of monthly excess returns for two shares plotted against excess returns for a market index.

---

Definitions:

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, self-awareness, and behavior.

Dissociative Identity

A psychological condition in which a person exhibits two or more distinct and alternating personalities, formerly known as multiple personality disorder.

Hallucinations

Experiencing sensations like sight, sound, or touch without any actual external inputs.

Schizophrenia

A mental disorder characterized by disturbances in thought, behavior, and emotions, often manifesting through delusions, hallucinations, and disorganized speech.