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:

Walter Raleigh

An English landed gentleman, writer, poet, soldier, politician, courtier, spy, and explorer known for popularizing tobacco in England and his expeditions to the Americas.

Aristocrats

Members of a social class regarded as the highest in society, often holding titles or hereditary honors.

Feudalism

A socio-economic system that dominated medieval Europe, characterizing the hierarchical relationship between lords and vassals based on land ownership and labor.

Seventeenth-Century America

Refers to North America in the 1600s, a period marked by settlement and colonial development particularly along the East Coast.