Which One of the Following Statements Is True

question 56

Multiple Choice

Which one of the following statements is true?

• A)Risk and return are inversely related.
• B)Investors are compensated only for diversifiable risk.
• C)The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.
• D)How a security affects the risk of a portfolio is less important than the actual risk of the security itself.
• E)Investing has two dimensions: risk and return.

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Definitions:

Productive Vocabulary

The set of words a person can actively use in speech or writing, reflecting one part of language competence.

Semantics

The study of meaning in language, including the analysis of the ways in which words, phrases, and sentences communicate information.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, including word order.

Vocabulary Growth

The process of acquiring new words and expanding one’s range of vocabulary over time.