Which of the Following Is Not a Key Principle of Modern

question 23

Multiple Choice

Which of the following is not a key principle of Modern Portfolio Theory?

• A)Investments should be viewed as part of a portfolio.
• B)Look at both risk and return when making investment decisions.
• C)Overall risk is not influenced by the degree of diversification among assets in the portfolio.
• D)The more dissimilar assets are the lower the risk for the portfolio.
• E)All of the above are key principles of Modern Portfolio Theory.

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Definitions:

Participant Observation

A qualitative research method where the researcher actively engages in the community or group being studied to gather insights and understand social dynamics.

Existing Statistics

Pre-collected numerical data that represents information or inputs on a variety of topics within a society or specific field of study.

Experiments

Methodical trials or tests carried out under controlled conditions to investigate hypotheses, observe effects, and establish causation in scientific studies.

Statistically Significant

A measure indicating that the likelihood of an observed effect occurring by chance is low, often used in research to validate findings.