Which of the Following Statements Is CORRECT

question 49

Multiple Choice

Which of the following statements is CORRECT?

• A) If you were restricted to investing in publicly traded common stocks, yet you wanted to minimize the riskiness of your portfolio as measured by its beta, then according to the CAPM theory you should invest an equal amount of money in each stock in the market.That is, if there were 10,000 traded stocks in the world, the least risky possible portfolio would include some shares of each one.
• B) If you formed a portfolio that consisted of all stocks with betas less than 1.0, which is about half of all stocks, the portfolio would itself have a beta coefficient that is equal to the weighted average beta of the stocks in the portfolio, and that portfolio would have less risk than a portfolio that consisted of all stocks in the market.
• C) Market risk can be eliminated by forming a large portfolio, and if some Treasury bonds are held in the portfolio, the portfolio can be made to be completely riskless.
• D) A portfolio that consists of all stocks in the market would have a required return that is equal to the riskless rate.
• E) If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.

Discuss the principles and examples of governmental oversight and the importance of accountability in the executive branch.

Evaluate the implications of privatization, devolution, and deregulation on the size and role of government.

Understand the historical evolution and reform of the federal bureaucracy, including civil service and managerial approaches.

Identify challenges and debates surrounding bureaucratic reform and the balance between effectiveness and reduction.

---

Definitions:

Guilty Verdict

The decision by a judge or jury in a court of law that the defendant did commit the crime they were accused of.

Crisis Counseling

A form of assistance provided to individuals experiencing acute emotional distress, designed to help stabilize their condition and guide them towards long-term solutions.

Situational Crisis

involves an unexpected, stressful event that overwhelms an individual's ability to cope, often leading to emotional upheaval.

Sudden Infant Death Syndrome

An unexplained event, largely occurring during sleep, that results in the sudden death of an otherwise healthy infant, often referred to as "crib death."