Which of the Following Describes What Will Occur as You

question 86

Multiple Choice

Which of the following describes what will occur as you randomly add stocks to your portfolio?

• A) The nondiversifiable risk will decrease.
• B) Both the diversifiable and nondiversifiable risk will decrease.
• C) The portfolio return will increase.
• D) The diversifiable risk will decrease.

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Definitions:

Perceive

To become aware of or the process of becoming aware of something through the senses.

Tastes

The sensations produced when a substance in the mouth reacts chemically with taste receptor cells located on taste buds.

Early Reflexes

Innate responses present from birth that aid in survival, such as the rooting and sucking reflexes that facilitate feeding in infants.

Function

A relation or expression that describes how one variable (the dependent variable) is related to one or more other variables (independent variables).