Portfolio a Has but One Stock, While Portfolio B Consists

question 110

True/False

Portfolio A has but one stock, while Portfolio B consists of all stocks that trade in the market, each held in proportion to its market value.Because of its diversification, Portfolio B will by definition be riskless.

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Definitions:

Lineup

A procedure in law enforcement where suspects are presented for identification by a witness, or a formation of a team or group arranged by rank or standing.

Recall Task

A cognitive task that requires the retrieval of previously learned information from memory without the presence of the original stimuli.

Multiple Choice

A type of question or test item that offers several answers from which one is to be chosen.

Semantic Memory

Semantic Memory is a type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for understanding language and facts.