Which One of the Following Is Eliminated, or at Least

question 75

Multiple Choice

Which one of the following is eliminated, or at least greatly reduced, by increasing the number of individual securities held in a portfolio?

• A)number of economic states
• B)various expected returns caused by changing economic states
• C)market risk
• D)diversifiable risk
• E)nondiversifiable risk

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Definitions:

Physical Stimuli

External factors or changes in the environment that can produce a physical response in an organism.

Psychological Laboratory

A controlled environment where experiments are conducted to study various aspects of human behavior and mental processes.

Wilhelm Wundt

A German physician, physiologist, philosopher, and professor, known as one of the founders of modern psychology.

Structuralist Perspective

An approach in psychology that seeks to understand the structure of the mind by analyzing its components, such as sensations, feelings, and images.