Which of the Following Is TRUE Regarding Fluctuations in Both

question 23

Multiple Choice

Which of the following is TRUE regarding fluctuations in both individual stock prices and portfolios of stocks?

• A)aggregate market movements are the largest single factor explaining these fluctuations
• B)beta is the largest single factor explaining these fluctuations
• C)standard deviation of returns is the largest single factor explaining these fluctuations
• D)financial risk is the largest single factor explaining these fluctuations

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Definitions:

Heritability Estimates

Statistical measures that indicate what proportion of variation in a trait within a population is due to genetic differences among individuals.

IQ Scores

Quantitative measures of a person's intelligence relative to that of others, based on standardized tests.

Genetic Differences

Variations in the DNA sequences among individuals, which contribute to the diversity of organisms' traits and characteristics.

Verbal IQs

Measures of intelligence that assess an individual's ability to use language, including vocabulary and verbal reasoning skills.