As the Number of Securities in a Portfolio Is Increased

question 6

Multiple Choice

As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation?

• A) It increases at an increasing rate.
• B) It increases at a decreasing rate.
• C) It decreases at an increasing rate.
• D) It decreases at a decreasing rate.
• E) It first decreases, then starts to increase as more securities are added.

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Definitions:

V-Ref

Reference voltage. ECU or ECM conditioned voltage (usually 5 volts DC) supplied to various sensors (such as thermistors, potentiometers) in truck electronic circuits. In most cases, a portion of the voltage is returned to indicate the status of sensor.

Potentiometer

A three-terminal voltage divider. The terminals are identified as supply voltage, signal voltage, and ground. The position of the slider on the device resistive track determines how supply voltage is divided between the signal and ground paths.

Throttle Position Sensor

A sensor used to monitor the position of the throttle in an internal combustion engine, sending data to the engine control unit to optimize engine performance.