As We Add More Securities to a Portfolio,the ____ Will

question 23

Multiple Choice

As we add more securities to a portfolio,the ____ will decrease:

• A) total risk.
• B) systematic risk.
• C) unsystematic risk.
• D) economic risk.
• E) standard error.

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Definitions:

Final Payment

The last payment made on a loan, debt, or financing agreement, completing the repayment obligation.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period.

Economic Value

The calculation of the advantage that a product or service offers to an economic participant.

Rate Of Return

The outcome of an investment, showing profit or loss across a chosen span, and presented as a percentage of the initial investment amount.