An Increase in the Number of Corporations in a Portfolio

question 62

Multiple Choice

An increase in the number of corporations in a portfolio from 110 to 120 reduces

• A)market risk by more than an increase from 1 to 10.
• B)market risk by less than an increase from 1 to 10.
• C)firm-specific risk by more than an increase from 1 to 10.
• D)firm-specific risk by less than an increase from 1 to 10.

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Definitions:

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, including its culture, employees, and management.

Enlarging Office

Refers to the process of expanding the physical or organizational capacity of an office environment to accommodate more staff or enhance operational efficiency.

Work-Related Issues

Problems or challenges encountered in the workplace that affect the performance, environment, or relationships among employees.

Company Performance

An assessment of a business's overall achievements, financial health, and operational efficiency over a specified period.