As Randomly Selected Securities Are Combined to Create a Portfolio

question 144

Multiple Choice

As randomly selected securities are combined to create a portfolio, the ________ risk of the portfolio decreases until 10 to 20 securities are included. The portion of the risk eliminated is ________ risk, while that remaining is ________ risk.

• A) diversifiable; nondiversifiable; total
• B) relevant; irrelevant; total
• C) total; diversifiable; nondiversifiable
• D) total; nondiversifiable; diversifiable

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Definitions:

Diverse Range

A broad spectrum or variety of different types, categories, or options available within a certain context.

Aggressive Communication

A style of communication where an individual expresses their needs, wants, or feelings in a forceful, hostile, or dominating way, often at the expense of others.

Assertive Communication

Expressing oneself in a direct and civil manner.

Communication Style

The characteristic way in which an individual communicates with others, including verbal, non-verbal, and written methods.