As Randomly Selected Securities Are Combined to Create a Portfolio,the

question 17

Multiple Choice

As randomly selected securities are combined to create a portfolio,the ________ risk of the portfolio decreases.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:

Spleen

Large lymphatic organ in the upper part of the abdominal cavity on the left side between the stomach and diaphragm, composed of white and red pulp. It responds to foreign substances in the blood, destroys worn-out red blood cells, and is a storage site for blood cells.

Immune Response

The body's defense mechanism against pathogens, involving recognition and destruction of harmful substances or organisms.

Dense Connective Tissue

A type of connective tissue that is rich in collagen fibers, providing strength and elasticity.

Lymph Nodes

Lymph nodes are small, bean-shaped structures that are part of the lymphatic system; they filter substances that travel through the lymph fluid, and contain immune cells that help the body to fight infection and disease.