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:

Progenitor

An ancestor or parent in a direct line of descent, often used to describe the earliest originator or precursor of a particular lineage or group.

Plasma Cell

A type of white blood cell that produces and secretes large volumes of antibodies, playing a critical role in the immune response.

Antigen Presenting Cells

Immune cells that process and present antigens to T-cells, initiating an immune response.

B Cell

A type of white blood cell that plays a significant role in the body's immune response by producing antibodies to fight off pathogens.