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:

Distinctively

In a way that is characteristic of a specific person, thing, or group and sets it apart from others.

Eyewitness

Refers to an individual who personally sees or experiences an event, and can therefore report their observations.

Smashed

In psychological experiments, particularly those related to memory and suggestion, "smashed" is often used to describe the influence of specific wording on participants' memory recall, such as their estimation of speed in a car accident.