Diversification Increases When ________ Decreases

question 27

Multiple Choice

Diversification increases when ________ decreases.

• A)variability
• B)return
• C)risk
• D)A and C
• E)all of the above

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Definitions:

Level Of Significance

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).

Null Hypothesis

A default hypothesis that there is no significant difference or effect, tested against the alternative hypothesis.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it depends on the chosen level of significance.