Which One of the Following Indicates a Portfolio Is Being

question 83

Multiple Choice

Which one of the following indicates a portfolio is being effectively diversified?

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

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Definitions:

Independent Variables

The variables manipulated or changed in an experiment to explore their effects on the dependent variable.

Interactive Effects

The combined effects of two or more independent variables on a dependent variable that are not simply additive.

Between-Groups Design

An experimental design where different groups of participants are exposed to different treatments or conditions and compared.

Random Assignment

The process of allocating participants or units in a study to different groups purely by chance, minimizing pre-existing differences between the groups.