As the Number of Stocks in Your Portfolio Increases

question 121

Multiple Choice

As the number of stocks in your portfolio increases

• A)the variability in your portfolio increases.
• B)the systematic risk in your portfolio increases.
• C)the unsystematic risk in your portfolio increases.
• D)none of the above.

---

Definitions:

Marginal Probability

The probability of an event occurring, taking into account all possible related events.

P(A And B)

The joint probability of two events occurring simultaneously, within a specified context.

Probability Notation

The standard symbols and formulations used to represent probabilities in mathematical expressions.

Conditional Probability

The chance of a specific event occurring, conditional on the occurrence of another event beforehand.