Which One of the Following Would Tend to Indicate That

question 1

Multiple Choice

Which one of the following would tend to indicate that a portfolio is being effectively diversified?

• A)A decrease in the portfolio standard deviation
• B)An increase in the portfolio rate of return
• C)An increase in the portfolio beta
• D)An increase in the portfolio standard deviation
• E)A constant portfolio beta

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Definitions:

Retribution

A principle of justice where punishment is imposed on someone as vengeance for a wrong or criminal act.

Personality Development

The process of developing and refining an individual's character, traits, and behavioral patterns from infancy through adulthood.

Biological Forces

The innate and biological factors that influence human behavior, such as genetics, brain structures, and the biochemical processes.

Social Forces

External societal factors that influence individuals' behaviors, decisions, and societal trends.