If You Build a Large Enough Portfolio,you Can Diversify Away

question 19

Multiple Choice

If you build a large enough portfolio,you can diversify away all ________ risk,but you will be left with ________ risk.

• A)diversifiable,unsystematic
• B)unsystematic,systematic
• C)systematic,undiversifiable
• D)diversifiable,diversifiable
• E)common,unsystematic

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Definitions:

Guided Group Interaction

A therapeutic or educational technique where group members interact under the facilitation of a leader, promoting learning and development.

Classical Conditioning Theory

A psychological concept that explains learning as a process of associating an involuntary response with a new stimulus.

Life Space

A psychological concept referring to a person's psychological activities within the physical and social environment.

Valence

In psychology, the intrinsic attractiveness(positive valence) or averseness(negative valence) of an event, object, or situation.