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:

Stone Tool Tradition

The practice of making and using tools made from stone by human societies, particularly during the Paleolithic period.

First Primates

The earliest known members of the primate order, which includes humans, monkeys, and apes, characterized by traits such as grasping hands and stereoscopic vision.

Meat Consumption

The practice of eating meat, which includes various types of animal flesh and organs, as a part of a diet.

Geographical Areas

Specific regions or locations on Earth, defined by natural or artificial boundaries and characterized by distinct environmental and cultural attributes.