In a Portfolio, Risk Is Evaluated in a Different Way

question 76

Multiple Choice

In a portfolio, risk is evaluated in a different way than with an individual project. In evaluating portfolio risk we

• A) need to consider the impact of a given project on the overall risk of the firm.
• B) recognize that a risky investment may create a portfolio with less risk.
• C) need to consider how the returns of the projects in the portfolio are correlated.
• D) all of these are true.

---

Definitions:

Exercise Programs

Structured routines of physical activities designed to enhance physical fitness and health.

Older Patients

Individuals of advanced age, often considered to be those who are 65 years old or older, who may have different healthcare needs and vulnerabilities.

Health Promotion

Health promotion involves strategies and practices aimed at enhancing the health and well-being of individuals and communities by encouraging healthy behaviors and lifestyles.

Physical Deconditioning

The loss of physical fitness or muscle strength due to inactivity or lack of exercise, often leading to decreased functionality and health.