The Measure of Risk for Pairs of Stocks in a Portfolio

question 21

Multiple Choice

The measure of risk for pairs of stocks in a portfolio selection problem is called:

• A)the covariance of the return
• B)the variance of the return
• C)the expected return
• D)decreasing marginal return
• E)None of the above

---

Definitions:

Resentment

A type of moral outrage that occurs when we ourselves are treated unjustly.

Moral Sentiment

Feelings or emotions that guide or influence ethical behavior and moral judgments.

Fear

An emotional response to perceived threats or danger, serving as a survival mechanism but can also lead to anxiety or avoidance behaviors.

Moral Development

Refers to the process by which individuals acquire and understand the values, attitudes, and behaviors considered appropriate and ethical within their society or culture.