Which of the Following Statements Is Correct

question 63

Multiple Choice

Which of the following statements is correct?

• A)A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio.
• B)A portfolio that consists of 40 stocks that are not highly correlated with the market will probably be less risky than a portfolio of 40 stocks that are highly correlated with the market, assuming the stocks all have the same standard deviations.
• C)A two-stock portfolio will always have a lower beta than a one-stock portfolio.
• D)If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.

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Definitions:

Equal Partnership

A relationship, whether in business or personal contexts, in which all parties involved have equal shares, rights, and say in decisions, promoting fairness and collaboration.

Vision of Marriage

An individual or societal outlook on what marriage is and should be, encompassing the roles, expectations, and values associated with it.

Youth International Party

An American radically youth-oriented and countercultural revolutionary offshoot of the free speech and anti-war movements of the 1960s.

Abbie Hoffman

An American political and social activist known for his leadership in the Yippie movement and protests against the Vietnam War during the 1960s and 1970s.