Diversification Can Effectively Reduce Risk

question 13

Multiple Choice

Diversification can effectively reduce risk.Once a portfolio is diversified, the type of risk remaining is:

• A)individual security risk.
• B)riskless security risk.
• C)risk related to the market portfolio.
• D)total standard deviations.
• E)None of the above.

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Definitions:

Brain Volume

The total space occupied by the brain, typically measured in cubic centimeters or milliliters, and often used to study correlations with cognitive abilities.

Australopithecines

A group of extinct hominins closely related to humans, known from fossil remains found in Eastern Africa.

Homo Sapiens

The species to which all modern human beings belong and the only extant member of the genus Homo.

Spreading Outside

The process by which a phenomenon or entity expands beyond its original boundaries or limits.