The Change of Risk in a Portfolio from the Addition

question 106

Multiple Choice

The change of risk in a portfolio from the addition of one more share of a particular asset to the portfolio is called

• A) CAPM.
• B) marginal risk.
• C) market risk.
• D) diversifiable risk.

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Definitions:

France

A country in Western Europe known for its rich history, culture, and significant contributions to art, science, and politics.

England

A country that is part of the United Kingdom, known for its rich history, cultural landmarks, and as a global financial center.

Cloth Production

The process of creating textiles or fabrics from fibers through weaving, knitting, pressing, or bonding.

Heckscher-Ohlin Model

An economic theory that proposes countries will export products that utilize their abundant and cheap factor of production, and import products that require resources that are scarce domestically.