The Systematic Risk (Beta)of a Portfolio Is ________ by Holding

question 27

Multiple Choice

The systematic risk (beta) of a portfolio is ________ by holding more stocks,even if they each had the same systematic risk.

• A)unchanged
• B)increased
• C)decreased
• D)eliminated
• E)doubled

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Definitions:

MMPI-2

The Minnesota Multiphasic Personality Inventory-2, a widely used standardized psychometric test of adult personality and psychopathology.

Standardized Test

A test that is administered and scored in a consistent manner to ensure reliability and validity of the measures it intends to assess.

Ambiguous Stimuli

Ambiguous stimuli are objects, words, or images that can be interpreted in multiple ways and often used in psychological tests to assess perception and personality.

Psychodynamic Theorists

Psychologists who study the psychological forces underlying human behavior, feelings, and emotions, and how they may relate to early experience.