When Many Assets Are Included in a Portfolio or Index

question 14

Multiple Choice

When many assets are included in a portfolio or index the risk of the portfolio or index will be:

• A) greater than the risk of the securities because the correlations are greater than 1.
• B) equal to the risk of the securities because the correlations are equal to 1.
• C) less than the risk of the securities because the correlations are usually less than 1.
• D) unaffected by the risk of securities because their correlations are less than 1.

Understand the impact of physical and emotional states on creativity and critical thinking.

Appreciate the importance of diversity and multicultural experiences in enhancing creative problem solving.

Acknowledge the role of feedback and collaboration in the creative process.

Understand the purpose and methods of financial statement analysis, including horizontal and vertical analysis.

---

Definitions:

Deep Diversity

Diversity that goes beyond surface attributes such as race and gender to include differences in values, experiences, and cognitive styles.

Cohesion

Refers to the degree of camaraderie and unity within a group, affecting its overall performance and member satisfaction.

KSAs

An acronym for Knowledge, Skills, and Abilities; a set of criteria used to evaluate an individual's capability to perform a job.

Abilities

The physical or mental capacities that an individual possesses, which enable them to perform specific tasks.