The Most Diversified Portfolio in Terms of Risk Is $100,000

question 71

Multiple Choice

The most diversified portfolio in terms of risk is $100,000 worth of stock in:

• A)10 companies in the same industry.
• B)10 companies in two industries.
• C)10 companies in five industries.
• D)one company that sells 10 products.

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Definitions:

Potassium Ions

Charged atoms of potassium, vital for various physiological processes including nerve signal transmission, muscle contraction, and fluid balance within the body.

Guard Cells

Specialized cells in the epidermis of leaves, stems, and other organs that regulate gas exchange and water loss by controlling the opening and closing of stomata.

Stomata

Tiny openings or pores found in the epidermis of leaves and stems that allow for gas exchange between the plant and its environment.

Palisade Mesophyll

The layer of closely packed cells in a plant leaf where most photosynthesis occurs.