Which One of the Following Would Indicate a Portfolio Is

question 8

Multiple Choice

Which one of the following would indicate a portfolio is being effectively diversified?

• A)An increase in the portfolio beta
• B)A decrease in the portfolio beta
• C)An increase in the portfolio rate of return
• D)An increase in the portfolio standard deviation
• E)A decrease in the portfolio standard deviation

Learn about the non-contraceptive health benefits of certain birth control methods.

Understand the mechanisms of action of intrauterine devices (IUDs) and hormonal contraceptives.

Grasp the concept and practice of fertility awareness-based methods.

Identify the risks and warnings of using specific contraceptive devices.

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Definitions:

Constant-Growth DDM

A model that calculates a stock's value by assuming dividends will increase at a steady rate forever, known as the dividend discount model with constant growth.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a regular basis.

Risk-Free Rate

The expected profit from an investment that carries no chance of financial loss, typically shown by the interest rate on governmental bonds.