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.

Identify and classify different life forms based on their structural and functional characteristics.

Recognize the role and impact of technology in scientific discovery and environmental management.

Understand the foundational concepts of ecology, including population, community, and ecosystem dynamics.

Grasp the scientific method's role in biological research and its application in solving real-world problems.

---

Definitions:

Open Circulatory System

A type of circulatory system where blood is not always contained within blood vessels but flows freely through cavities in the body, facilitating exchange of nutrients and waste with cells.

Blood Vessels

The tubes in the body through which blood flows, including arteries, veins, and capillaries, responsible for transporting oxygen, nutrients, and waste products.

Hemoglobin

This substance within red blood cells facilitates the movement of oxygen from the lungs to various body tissues and the return transport of carbon dioxide to the lungs.

Arthropods

Arthropods are invertebrate animals with an exoskeleton, a segmented body, and paired jointed appendages, including insects, arachnids, and crustaceans.