Diversification Can Effectively Reduce Risk

question 13

Multiple Choice

Diversification can effectively reduce risk.Once a portfolio is diversified, the type of risk remaining is:

• A)individual security risk.
• B)riskless security risk.
• C)risk related to the market portfolio.
• D)total standard deviations.
• E)None of the above.

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Definitions:

Glucose Uptake

The process by which cells absorb glucose from the bloodstream, which is then used as a form of energy.

Thirst

The sensation and regulatory mechanism that motivates the consumption of liquids to maintain optimal levels of body hydration.

Glucagon

A hormone produced by the pancreas that raises blood glucose levels, serving as a counter-regulatory mechanism for insulin.

Pancreas

A gland in the digestive and endocrine system that produces insulin and digestive enzymes.