An Increase in the Number of Corporations in a Portfolio

question 6

Multiple Choice

An increase in the number of corporations in a portfolio from 1 to 10 reduces

• A)market risk by more than an increase from 110 to 120.
• B)market risk by less than an increase from 110 to 120.
• C)firm-specific risk by more than an increase from 110 to 120.
• D)firm-specific risk by less than an increase from 110 to 120.

---

Definitions:

Start Date

The specified day when an event begins or a contract comes into effect.

Aggregate Function

A type of function used in database queries and spreadsheet software that performs a calculation on a set of values, returning a single value.

Select Values

The process of choosing or highlighting specific data from a set of options or a dataset.

Aggregate Function

A computational method used in databases to perform a calculation on a set of values, returning a single value.