Which of the Following Statements Is CORRECT

question 45

Multiple Choice

Which of the following statements is CORRECT?

• A) Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
• B) A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.
• C) A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.
• D) If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.
• E) A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.

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Definitions:

Penis Size

Refers to the length and girth of the male genital organ, which can vary greatly among individuals without necessarily affecting health or fertility.

Testes

The male reproductive glands located in the scrotum, responsible for producing sperm and testosterone.

Cremasteric Reflex

A reflex action that results in the drawing up of the testicles and scrotum when the inner thigh is stroked, indicative of normal testicular function.

Uncircumcised Infant

A male infant who has not undergone circumcision, a procedure where the foreskin covering the head of the penis is removed.