Diversification Can Effectively Reduce Risk

question 24

Multiple Choice

Diversification can effectively reduce risk. Once a portfolio is diversified the type of risk remaining is:

• A) individual security risk.
• B) riskless security risk.
• C) risk related to the market portfolio.
• D) total standard deviations.

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Definitions:

Extreme Sleepiness

A condition marked by an overwhelming desire to sleep at inappropriate times, potentially due to underlying medical or psychological conditions.

Stage 2

In the context of sleep studies, the second stage of the sleep cycle, characterized by the presence of sleep spindles and K complexes, marking a deeper level of sleep than Stage 1.

Per Second

A rate of change or action expressed as a unit measured within one second.

Alert

The state of being watchful and fully aware, often in preparation for or response to potential dangers or important news.