Which of the Following Is Correct

question 84

Multiple Choice

Which of the following is correct?

• A)Diversifiable risk, which is measured by the stock's beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
• B)Diversifiable risk, which is measured by the standard deviation, can be lowered by adding more stocks to the portfolio in which the stock is held.
• C)Systematic risk, which is measured by the stock's beta, cannot be diversified away by adding more stocks to the portfolio in which the stock is held.
• D)Diversifiable risk, which is measured by the stock's expected return, can be lowered by adding more stocks to the portfolio in which the stock is held.

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Definitions:

Aggressive Coupling

A connection strategy between two components designed to engage firmly and rapidly, often leading to higher wear and tear.

Pintle Hooks

A type of tow hitch that uses a pin and hook mechanism to connect trailers to towing vehicles, often used for heavy or industrial towing.

Hydraulic Buffers

Devices that use hydraulics to absorb energy from impacts or collisions, often used in industrial applications to reduce shock and vibrations.

Pneumatic Buffers

Tools powered by compressed air used for polishing surfaces or buffing out scratches, commonly used in automotive and manufacturing applications.