Which of the Following Is/are True

question 21

Multiple Choice

Which of the following is/are true?

• A) Most of the unsystematic risk is removed by the time a portfolio contains 30 stocks.
• B) Two points on the Characteristic Line are the T-bill and the market portfolio.
• C) The greater the total risk of an asset, the greater the expected return.
• D) All securities have a beta between 0 and 1.

---

Definitions:

Depth

The perceived distance from the observer to a target point, often associated with the dimensionality of space in visual perception.

Distance

The amount of space between two points, typically measured physically or conceptually.

Brightness

The perception of how light or brilliant an object or light source appears, influenced by the intensity of the light it emits or reflects.

Estimate

An approximation or educated guess based on existing data or observations, often used where exact data is unavailable.