A Well-Diversified Portfolio Is Defined as

question 36

Multiple Choice

A well-diversified portfolio is defined as

• A)one that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero.
• B)one that contains securities from at least three different industry sectors.
• C)a portfolio whose factor beta equals 1.0.
• D)a portfolio that is equally weighted.
• E)all of the above.

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Definitions:

Industrial Designs

A legal protection for the unique visual design of objects that are not purely utilitarian.

Trademark Legislation

Laws and regulations that govern the registration, protection, and enforcement of trademarks to prevent unauthorized use of distinctive symbols, logos, or names.

Duty of Confidentiality

An obligation to preserve the secrecy of information entrusted by one party to another, often found in professional or contractual relationships.

Employer

An individual or organization that hires and pays people to work for them under a contract of employment.