Which of the Following Statements Is Correct

question 129

Multiple Choice

Which of the following statements is correct?

• A)A stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock.
• B)If an investor buys enough stocks, he or she can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. Therefore, if a portfolio contained all publicly traded stocks, it would be essentially riskless.
• C)Portfolio diversification reduces the variability of returns (as measured by the standard deviation) of each individual stock held in a portfolio.
• D)A security's beta measures its nondiversifiable, or market, risk relative to that of an average stock.

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Definitions:

Tympanic Cavity

The air-filled space in the middle ear that contains the auditory ossicles, important for sound transmission.

Auricle

The external, visible part of the ear that captures sound waves and directs them into the ear canal; also known as the pinna.

Pinna

The outer part of the ear that captures sound waves and directs them into the ear canal.

Rinne Test

is a hearing test that compares air conduction to bone conduction of sound, used to differentiate between types of hearing loss.