The Standard Deviation of a Portfolio Will Tend to Increase

question 15

Multiple Choice

The standard deviation of a portfolio will tend to increase when:

• A)a risky asset in the portfolio is replaced with U.S.Treasury bills.
• B)one of two stocks related to the airline industry is replaced with a third stock that is unrelated to the airline industry.
• C)the portfolio concentration in a single cyclical industry increases.
• D)the weights of the various diverse securities become more evenly distributed.
• E)short-term bonds are replaced with Treasury Bills.

Explore the application of karma yoga as a way of life and its relevance in decision-making.

Understand the foundational concepts and differences between nutrition education and nutrition counseling.

Identify strategies to improve dietary habits and behavior change.

Recognize the importance of empathy and congruence in the counselor-client relationship.

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Definitions:

Present Value Method

A technique used to determine the current worth of a future cash flow, considering the time value of money.

Business Combination

A transaction or event where an acquirer obtains control of one or more businesses.

Gain On Bargain

The financial gain realized when an asset is purchased below its fair market value.

Fair Value

The compensation received for parting with an asset or the expenditure in transferring a liability within a calm transaction among market actors at the date of assessment.