As Any Investor Can Create a Portfolio of Assets That

question 66

True/False

As any investor can create a portfolio of assets that will eliminate all, or virtually all, nondiversifiable risk, the only relevant risk is diversifiable risk.

---

Definitions:

Competitive Market

A competitive market is one where there are many buyers and sellers so that no single buyer or seller can influence the price or terms of products.

Efficient Outcomes

Are results in which resources are allocated in the most effective manner, often relating to maximized welfare or minimized waste.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.