You Have a Portfolio of Two Risky Shares Which Turns

question 25

Multiple Choice

You have a portfolio of two risky shares which turns out to have no diversification benefit.The reason you have no diversification is the returns:

• A)are too small.
• B)move perfectly opposite of one another.
• C)are too large to offset.
• D)move perfectly with one another.
• E)are completely unrelated to one another.

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Definitions:

Act of Omission

A situation where harm is caused by failing to take action, as opposed to actively causing harm through one's actions.

James Rachels

A philosopher best known for his work in bioethics and animal rights, including arguments against the doctrine of speciesism.

Allowed to Die

A term that refers to the decision not to intervene medically to prolong a person's life, often in contexts involving terminal illness or severe quality of life concerns.

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Medical technology that sustains a patient's vital functions when they are unable to do so on their own.