Portfolio a Contains Only One Security,while Portfolio B Contains 100

question 81

True/False

Portfolio A contains only one security,while Portfolio B contains 100 securities.Because of diversification effects,we would expect Portfolio B to have the lower relevant risk,but it is possible for Portfolio A to be less risky.

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Definitions:

Abusive Relationship

A pattern of abusive and coercive behaviors used to maintain power and control over another person in an intimate relationship.

Behavioral Therapist

A professional who focuses on modifying negative behaviors through reinforcement strategies and conditioning.

Conditioning

A learning process through which behavior becomes associated with a specific stimulus through reinforcement or punishment.

Observational Learning

The acquisition of knowledge and skills through the observation of others (who are called models) rather than by means of direct experience.