Portfolio Construction Allows for a Reduction in Risk of the Portfolio

question 3

Multiple Choice

Portfolio construction allows for a reduction in risk of the portfolio over individual assets:

• A) at a significant reduction in expected return
• B) without a change in expected returns
• C) with additional cost
• D) with a reduction in cost

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Definitions:

Homozygous

Referring to an individual who has two identical alleles for a particular gene or genes, affecting their traits or conditions.

Mutations

changes in the DNA sequence of an organism's genome, which can result in variations in physical appearance, function, or behavior.

X-Linked Disorders

Genetic conditions that are caused by mutations in genes on the X chromosome; typically, males are more severely affected due to having only one X chromosome.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by developmental and physical growth delays and distinctive facial features.