Which of the Following Is Most Likely to Occur as You

question 86

Multiple Choice

Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average stocks?

• A) The expected return of your portfolio is likely to decline.
• B) The diversifiable risk will remain the same, but the market risk will likely decline.
• C) Both the diversifiable risk and the market risk of your portfolio are likely to decline.
• D) The total risk of your portfolio should decline, and as a result, the expected rate of return on the portfolio should also decline.
• E) The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

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Definitions:

Divine

Pertaining to or involving a god; often associated with religious, sacred, or supernatural aspects.

Heritage

The range of cultural, historical, or natural assets passed down from previous generations, distinctive of a particular society or country.

Beliefs

Convictions or acceptance that something exists or is true, especially without proof.

Cultural Assessment

A process of evaluating and understanding a patient's beliefs, values, traditions, and customs to provide effective and respectful healthcare.