Which of the Following Is Most Likely to Occur as You

question 69

Multiple Choice

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average stocks?

• A) The expected return of your portfolio is likely to decline.
• B) The diversifiable risk will remain the same, but the market risk will likely decline.
• C) Both the diversifiable risk and the market risk of your portfolio are likely to decline.
• D) The total risk of your portfolio should decline, and as a result, the expected rate of return on the portfolio should also decline.
• E) The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

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Definitions:

Workforce Diversity

The inclusion of a wide range of people of different races, genders, ages, ethnicities, sexual orientations, and physical abilities in the workplace.

National Origin

Refers to the country or geographical region where an individual was born or where their ancestors originated.

High-performing Companies

Organizations that consistently achieve and exceed their operational and financial goals through innovation, efficiency, and effective management.

Extraordinary Results

Outcomes that surpass the standard or expected performance levels, often achieved through innovative strategies or exceptional effort.