The Reason Why a Fully-Diversified Portfolio Does Not Have Zero

question 10

Multiple Choice

The reason why a fully-diversified portfolio does not have zero risk is that some risk is:

• A) diversifiable.
• B) unrelated.
• C) not correlated.
• D) nondiversifiable.
• E) intrinsic.

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Definitions:

Migration Motives

The various reasons or factors that drive individuals or groups to move from one location to another, ranging from economic opportunities to safety concerns.

Ecocity

A city designed with careful consideration of environmental impacts, incorporating sustainable practices in energy, water, and food systems, and urban planning.

Mass Transit

A public transportation system designed to move large numbers of people efficiently by buses, trains, subways, or other vehicles.

Urban Population

Refers to the number of people living in cities or towns within a given area, highlighting the concentration of individuals in densely populated, built-up areas.