The Relationship That Exists Between Unsystematic Risk and the Number

question 2

Multiple Choice

The relationship that exists between unsystematic risk and the number of securities held in an investment portfolio is:

• A) non applicable as no relationship exists.
• B) inverse until unsystematic risk is removed.
• C) positive until unsystematic risk is removed.
• D) inverse up to a maximum of 10 securities and then positive.

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Definitions:

State of Health

Refers to the overall condition of an individual's body and mind, ranging from optimal wellness to illness.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Environment

The sum of all external conditions and influences affecting the life and development of an organism, including natural and built settings.

Ethnicity

A social group's shared cultural practices, perspectives, and distinctions that set it apart from others.