Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A)A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.
• B)Company-specific (or diversifiable) risk can be reduced by forming a large portfolio, but normally even highly diversified portfolios are subject to market (or systematic) risk.
• C)A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a one-stock portfolio if that one stock has a beta less than 1.0.
• D)If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.

Acknowledge the need for legal advice and the potential costs involved in estate planning.

Understand the concept of culture and its impact on international business.

Identify and describe the characteristics and examples of sweatshops.

Recognize the role and challenges of transnational corporations in the global market.

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Definitions:

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Reconstruction Merits

The benefits or positive outcomes of the Reconstruction era in the United States, particularly relating to the attempts to address the inequalities and injustices experienced by African Americans and rebuilding the Southern states post-Civil War.

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