For a Portfolio of 40 Randomly Selected Stocks,which of the Following

question 124

Multiple Choice

For a portfolio of 40 randomly selected stocks,which of the following is most likely to be true?

• A)The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation.
• B)The riskiness of the portfolio is the same as the riskiness of each of the stocks if each was held in isolation.
• C)The beta of the portfolio is less than the average of the betas of the individual stocks.
• D)The beta of the portfolio is equal to the average of the betas of the individual stocks.

---

Definitions:

Teleconferencing

The use of telecommunications technology to hold meetings between participants in different locations, allowing for audio and video communication.

Constructive Feedback

Information provided to an individual or group that is intended to help improve or develop performance, behavior, or skills in a supportive manner.

Impact on the Receiver

The effect or influence that a communicated message or action has on the individual or group receiving it.

Active Listener

A person who pays full attention to the speaker, understands, responds, and then remembers what is being said, engaging in effective and empathetic communication.